The earned income credit or EIC is automatically calculated by the program and many factors contribute to how it is calculated.

Earned income tax credit - Wikipedia

Please read the article below or click here to see the Earned Income Credit Table which begins on page 43 of the PDF to see the amount for which you are eligible. The earned income tax credit can be a great benefit for workers with lower incomes.

This tax break returns to qualified individuals a portion of the taxes they paid. It can even produce a tax refund for eligible filers who had no tax liability. Many people think the credit is available only to parents.

But the amount the Internal Revenue Service will give back is greater for eligible low-wage taxpayers with children. The amount is adjusted slightly for inflation each year. To qualify for the credit, a taxpayer must have earned income, but stay within certain thresholds.

If your AGI Adjusted Gross Income is equal to or more than the applicable limit listed above, you cannot claim the EIC. All wage or salary income, as well as any self-employment earnings, count toward the eligibility limits.

So do investment earnings. Married couples who file separate returns are not eligible for the earned income credit. If you are married but your spouse did not live in your home for the last six months of the year, you may be able to file as head of household and take the credit.

And if you have no children, you must meet three additional tests before you can claim it: You must be at least years-old, but under age 65 at the end of the tax year for which you are making the claim. You cannot be the dependent of another taxpayer. You must live in the United States for more than half of the tax year.

California Earned Income Tax Credit (Cal EITC) | California Franchise Tax Board

Requirements children must meet All taxpayers claiming credits based on the children they are raising must take into acco unt each child's age younger than 19 unless the child is a full-time student or permanently disabled , the child's relationship to the taxpayer and where the child lived during the tax year.

The relationship test is met if the child is your son, daughter, adopted child, stepchild or grandchild. Your brother, sister, stepbrother or stepsister or the child or grandchild of these relatives may also be considered if you care for this person as you would your own child.

Earned Income, Self-employment Income and Business Expenses

A foster child relationship also may qualify for the credit as long as: The child was placed with you by an authorized placement agency.

This includes a state or local government agency or court, as well as a tax-exempt organization licensed by a state.

You cared for the foster child as if the youngster was your own child. As for residency, the IRS generally demands that the child live with the taxpayer in the United States for more than half of the year. Start For Free Fast, Secure, and Always Accurate!