Earned Income Tax Credit (EITC): Who qualifies? How to claim it?

Those who live on US territory and their annual income falls between low and moderate can save some taxes and get a good return with the help of Earned Income Tax Credit (EITC). The Internal Revenue Service has introduced this scheme to help the low earning individuals, if one qualifies for it can reduce his/her owed tax a little and increase the amount of returns.

Earned Income Tax Credit (EITC)

US citizens whose annual income is between low to moderate can claim for EITC, by claiming it one can get tax return more than the basic amount. If one is eligible to get the benefits of Earned Income Tax Credit then he/she can claim it along with filling out a tax refund. 

What will be the amount of EITC it depends on the various terms of eligibility criteria, if you are married and have children or you are dependent on someone then you have to check that whether you qualify to avail the benefits of the EARNED INCOME TAX CREDIT (EITC) or not, by checking it even you can amount of credit.

Those who are filling the tax return for year 2022 without EITC are getting it within 21 days, if you e-File for refund with EITC then it can take even 3 to 4 more weeks than usual time to get a refund via Direct Deposit or Check. 

Earned Income Tax Credit Refund

IRS Tax Refund Calendar 2023

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Stimulus Check 2023

How to check one qualifies for the Earned Income Tax Credit or not?

Using the Internal Revenue Service’s EITC Assistant, you can check that you qualify to claim credit or not, to check it one must know income statements such as W-2s or 1099s, documents, which shows taxes withheld or money paid to his/her and any expenses or adjustments to his/her income.

The complete procedure to check that you qualify for Earned Income Tax Credit (EITC) or not is available below, go through it carefully.

  • Browse to https://irs.gov/, the only official website of the Internal Revenue Service.
  • Find an option of the SEARCH in the header menu-bar and tap on it.
  • A pop-up will be visible before you, type EITC and press the Enter button.
  • Find an option of the Earned Income Tax Credit (EITC) and hit on it.
  • Lookup for an option of Check if You Qualify under the section of Who Qualifies and click on it.
  • Now, you will have an option of the EITC Assistant, click on it and get redirected to another webpage.
  • You will be asked to provide General Information, Filing Status, Estimate Your Adjusted Gross Income (AGI) and Qualifying Children details.

After going through the procedure you have to check out whether you qualify to claim the Earned Income Tax Credit (EITC) or not.

Earned Income Tax Credit

EITC Qualifying Basic Rules 

There are some basic rules to qualify for the Earned Income Tax Credit (EITC), know it from below.

  • Once earned income must be below $59,187.
  • An individual investment income must be below $10,300 in tax year 2022.
  • It is mandatory to have an SSN (Social Security Number) before the due date of 2022 tax year.
  • A taxpayer must be a permanent resident of the US.
  • One must meet certain eligibility criteria if he/she is divorced and not filing the tax return jointly.

You must know that there are some special rules for Military, Clergy Taxpayers, and their relatives with disabilities, if one belongs to any of these categories he/she can EITC Assistant to check eligibility.

How to claim for Earned Income Tax Credit with tax returns?

If you have checked the eligibility for Earned Income Tax Credit (EITC) and qualified for it then you can claim it at least the time of e-filing for 2022 tax return. Tax Season 2023 has already started from January 23 and the last date to e-File for refund with EITC is 18 April. 

Those who already have filed to return with the Earned Income Tax Credit must know that they are likely to get it before or on 01 March 2023 if he/she has opted for the option of Direct Deposit to get the tax return with EITC.

If you want to claim the Earned Income Tax Credit for the year 2021, 2020 or 2019 then you must know that the last date for e-filing is 18 April 2025, 17 May 2024, and 15 July 2023, respectively.

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