Earned Income Credit • • • •

Transcription

Earned Income Credit • • • •
Earned Income Credit
The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $53,267. A tax
credit usually means more money in your pocket. It reduces the amount of tax you owe. The EIC may also give you a refund.
After 2010, you can no longer get advance payments of the credit in your pay during the year as you could in 2010 and
earlier years. This is because the law has changed. However, if you are eligible, you will still be able to claim the credit on
your 2015 return.
EIC is a refundable tax credit meaning you could qualify for a tax refund even if you did not have federal income tax withheld.
To claim the EIC, you must meet certain rules. These rules are summarized in Table 1.
Table 1. Earned Income Credit in a Nutshell for 2015
First, you must meet all the rules in these
columns.
Chapter 1.
Rules for Everyone
Third, you must
Second, you must meet all the rules in one of
meet the rule in
these columns, whichever applies.
this column.
Chapter 2.
Chapter 3.
Chapter 4.
Rules If You Have a
Rules If You Do Not
Figuring and
Qualifying Child
Have a Qualifying Child Claiming the EIC
1. Your
2. You must have a valid
adjusted gross
Social Security Number.
income (AGI) must
be less than:
3. Have earned income from
employment, self-employment
• $47,747
or another source.
($53,267 for
married filing jointly)
4. Cannot use the married,
if you have three or
filing separate filing status.
more qualifying
children,
5. You must be a U.S. citizen
or resident alien all year, or a
• $44,454
nonresident alien married to a
($49,974 for
U.S. citizen or resident alien
married filing jointly)
and choose to file a joint
if you have two
return.
qualifying children,
14. Your earned
income must be
less than:
• $47,747
($53,267 for
married filing
11. You must have lived jointly) if you have
in the United States more three or more
than half of the year.
qualifying
9. Your child must have a
(Special rules for military
children,
valid Social Security
personnel.)
Number and meet the
• $44,454
relationship, age,
12. You must be at least
($49,974 for
residency, and joint return
age 25 but under age
married filing
tests.
65.
jointly) if you have
two qualifying
10. Your qualifying child
13. You cannot be the
children,
cannot be used by more
dependent of another
6. Cannot be the qualifying
than one person to claim
• $39,131
person.
• $39,131
child of another person.
the EIC.
($44,651 for
($44,651 for
married filing jointly)
married filing
7. You cannot file Form 2555 or
if you have one
jointly) if you have
Form 2555-EZ (relating to
qualifying child, or
one qualifying
foreign earned income).
child, or
• $14,820
8. Your investment income
($20,330 for
• $14,820
must be $3,400 or less.
married filing jointly)
($20,330 for
if you do not have a
married filing
qualifying child.
jointly) if you do
not have a
qualifying child.
Tax Year 2015 maximum credit:




$6,242 with three or more qualifying children
$5,548 with two qualifying children
$3,359 with one qualifying child
$503 with no qualifying children
For more information or to see if you qualify, go to www.irs.gov/eitc or call 1-800-829-3676 and request Publication 596,
Earned Income Credit.