The earned income tax credit is a refundable tax credit. It
was created for taxpayers earning a low to moderate income. Through this
credit, qualified taxpayers can reduce or even eliminate their income tax
liability. In some cases, taxpayers can even receive a refund if the credit
outweighs how much they would owe in taxes.
No matter how broadly the credit affects you, if you are
eligible for it, you won’t want to miss out! This is a great way to save or
potentially earn money. And, sadly, a lot of people miss out on it because they
don’t know what it is or don’t realize that they qualify.
Eligibility Requirements
So, who is eligible for the earned income tax credit? Well,
first of all, for the 2018 tax year, you’ll need to ensure that neither your
adjusted gross income or your earned income exceed the following:
l $49,194
with three or more qualifying children
l $54,884
with three or more qualifying children if married filing jointly
l $45,802
with two qualifying children
l $51,492
with two qualifying children if married filing jointly
l $40,320
with one qualifying child
l $46,029
with one qualifying child if married filing jointly
l $15,270
with no qualifying children
l $20,950
with no qualifying children if married filing jointly
Other eligibility requirements include:
l Being
a US citizen
l Being
over the age of 25 or, if not over that age, having qualifying children
l Not
filing “married filing separately’
l Having
earned income from employment
l Not
having more than $3,500 from interest, dividends, and other investment earnings
If you think you meet these eligibility requirements, do not
miss out on a great credit. Talk to your tax professional about the credit and
how to ensure you get what is rightfully yours!