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The earned income tax credit benefits working individual and families with low to moderate incomes. EITC can lower a taxpqyer's taxes, and even result in a refund.
To take advantage of this credit, taxpayers must file a tax return and claim the credit. They should do so even if they don't owe tax and aren't required to file. EITC can be owrth up to $6,557 for tax year 2019.
Taxpayers should first find out if they qualify for the credit. Here are things for taxpayers to consider.
- Major life events may cause taxpayers to move in and out of eligibility for the credit from year to year. Because of this, it's a good idea for people to see if they qualify.
- Eligible taxpayers must have earned income form working for an employer or from running or owning a business or farm. They must also meet basic rules.
- Taxpayers without children may also qualify for EITC.
- Taxpayers can't claim EITC if their filing status is married filing separately.
- Taxpayers must have valid Social Security numbers for themselves, their spouse, and any qualifying child listed for the credit on their tax return.
Before claiming the credit, taxpayers should also learn the EITC rules:
- Taxpayes may be married or unmarried. If married, they must file a joint return.
- Those who claim the credit without a qualifying child umust meet rules for age, residency and dependency.
- For a child to qualify, they must live with the taxpayer for more than six months of the year.
- In addition, the child must meet rules for age, relationship, support, citzenship and joint return.
- Special rules apply for members of the U.S. military serving in a combat zone.
Taxpayers can use the EITC Assistant to determine if they're eligible for the credit. This tool also estimates the amount of the taxpayer's criedit. Assistant is available in English or
Go to IRS.GOV and type EITC Assistant in search window.