Qualification for the Earned Income Tax Credit
The EITC is a credit available to those with low to moderate income levels. The income level determining EITC qualification is adjusted based upon the number of qualifying children, and whether or not the filer is filing a single or joint return. The credit is designed to offset payment of social security taxes and in doing so provides a substantial incentive for individuals to work.
To qualify, one must file taxes, even if the amount earned is below the threshold which requires filing taxes. EITC qualifiers should know that receiving this credit will not affect other government benefits such as social security payments or Medicaid.
At one end of the scale, one qualifies for an EITC if annual income is $12,880 or below, with no qualifying children. If an individual is filing singly, and has two or more qualifying children, annual earnings must be $38,486 or below. If filing a joint married return, a couple with two or more qualifying children must receive equal to or less than $41,646 in earnings.
It is very important to file correctly when qualifying for the EITC; if a return qualifies but the qualification is found to be dependent on false information, the filer may not receive the EITC for two subsequent years, regardless of legitimate qualification.
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