Earned Income Tax Credit

Is this tax credit for you?

Millions of Americans forgo critical tax relief each year by failing to claim the Earned Income Tax Credit (EITC), a federal tax credit for individuals who work but do not earn high incomes. Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund. Each year, millions of taxpayers receive billions of dollars from the EITC.

"The EITC helps hardworking taxpayers, yet each year an estimated 25 percent of people who qualify don’t claim the credit," said David R. Williams, Director, Earned Income Tax Credit at the Internal Revenue Service. "That’s why the IRS is working to make it easier for taxpayers to understand whether they are eligible."

To claim the credit, you do not need to have children. If you have children, they must meet the relationship, age and residency requirements to claim the credit.

You can elect to have your nontaxable combat pay included in earned income for the earned income credit. Combat pay, Nontaxable. If you were a member of the U.S. Armed Forces who served in a combat zone, certain pay is excluded from your income.

Easy ways to determine if you qualify
There's a lot to know about qualifying for EITC, the best way to find out if you qualify is to use the EITC Assistant at www.irs.gov. By answering questions about yourself, your children, your living situation and your income, this tool will help you determine if you are likely to qualify for the EITC. You'll see immediate results.

Please consult your tax advisor regarding specific tax situations.