Experts Share Tips on How You Can Claim Your EIC

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The EIC (Earned Income Credit) or EITC (Earned Income Tax Credit) is a refundable tax credit that may be used to decrease taxable income to zero and earn a tax refund.

The IRS adjusts the maximum amount of EITC that may be claimed and income levels against which it is calculated annually based on changes in the cost of living. To claim the credit, you must fulfill certain conditions.

• You need to have a valid Social Security Number
• You should be a US citizen
• Have earnings and fulfill the EITC eligibility requirements

For better clarity, check the EIC, earned income credit table amounts for the tax update of current year. The EITC is calculated in two ways. You can figure out your credit yourself using the earned income credit worksheet and table, which may be found in the 1040 Instruction Booklet. Or, you may ask the IRS to calculate your credit amount for you if you don’t want to figure it out yourself. To do so, go to line 64a of Form 1040 and write “EIC.”

But do note, if you are married and filing a separate return, if you have investment income of more than $10,000 in 2021 (2021 amount), or if you can be the qualifying child of another taxpayer, you cannot claim the credit. So make sure you fall into all the checks in order to receive your deserved Earned Income Credits.

A general thumb rule for EIC is the lesser you earn, the more is your credit.

And if you have children in your family, you are definitely eligible for larger credits.

EIC or EITC, the earned income tax credit, is a refundable tax credit provided to workers with little or modest incomes. The earned income credit for the 2021 tax year will be $1,502 to $6,728 depending on tax-filing status, income, and the number of children. People who do not have children can qualify.

If your income qualifies, you may be eligible for the credit. When you do your taxes, be sure to claim it. The IRS encourages you to notify the IRS if you believe that you qualified for the earned income credit but didn’t claim it on your return in previous three years and would have been eligible.

Now who all qualifies for the same, you can check out the EIC table 2021. But to nutshell,

• To be eligible for this deduction, you must have at least $1 of earned income (pensions and unemployment benefits do not qualify).
• Your investment income must be less than $10,000.
• If you’re divorced but still married, you may qualify for the EITC 2021. To qualify for this tax benefit, you and your child must file a joint tax return and your kid must spend more than half of the year with you. You must have been separated from your spouse for at least six months and not lived with him or her during the previous six months in order to qualify.

You can use the EIC, earned income credit calculator to see how much of a credit you qualify for. Once you have your estimated amount for the (EITC), you are then able to use the tax software and claim your estimated credit amount.