The Earned Income Tax Credit, EITC
The Earned Income Tax Credit, EITC or EIC, is a benefit for working people with low to moderate income. To qualify for this credit, you must meet certain requirements and must file a tax return, even if you do not owe any tax or are not required to file. EITC can reduce the amount of tax you owe and may give you a refund.
If you claim the earned income tax credit (EITC) or the additional child tax credit (ACTC) on your tax return, the IRS must hold your refund until mid-February, including the portion not associated with EITC or ACTC. You may track your refund through the IRS.
Do you qualify?
To qualify for EITC you must have earned income from working for someone or from running or owning a business or farm and meet the basic rules. In addition you must also either meet additional rules for workers without a qualifying child or have a child that meets all the qualifying child rules for you.
There is an IRS link: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant , EITC Assistant to see if you qualify for tax years: 2016, 2015, and 2014. This link will help you find out your filing status, if your child is a qualifying child, if you are eligible and estimate the amount of the EITC you may get.
Use the EITC Income Limits, Maximum Credit Amounts and Tax Law Updates link for the current year, previous years and the upcoming tax year.
I Received an EITC Notice
The IRS does send letters about EITC that may include the following:
Suggest you claim EITC if you do qualify.
Ask you to send information to verify your EITC claim.
Provide important information about your claim.
Visit EITC Central https://www.eitc.irs.gov/ for more tools and information. Then visit us at
http://www.e-file-tax-returns.org/ and let us help you complete your tax return from the privacy and convenience of your home computer!
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