The Earned Income Tax Credit (EIC or EITC) is a refundable tax credit for low- and moderate-income workers. The amount depends on income and number of children. People without kids can qualify. For the 2019 tax year, the earned income credit ranges from $529 to $6,557. For 2020, it’s $538 to $6,660.
If you fall within the guidelines for the credit, be sure to claim it on your return when you do your taxes And if you didn’t claim the earned income credit when you filed your taxes in the last three years but you think you qualified for it, MKG Tax Consultants encourages you file an amendment so you can get that money back.
EITC Requirements, Qualifications
It is estimated that 1 out of 5 people who qualify for the EITC don’t claim it on their tax returns. Those people most in danger of missing out on their Earned Income Tax Credit include:
- self-employed
- people living in rural areas
- grandparents raising their grandchildren
- recently divorced
- recently unemployed
- taxpayers with no children
- recipients of disability benefits
Qualifying Children Claimed
| If filing | Zero | One | Two | Three |
|---|---|---|---|---|
| Single, Head of Household, or Widowed | $15,570 | $41,094 | $46,703 | $50,162 |
| Married Filing Jointly | $21,370 | $46,884 | $52,493 | $55,952 |
Investment Income Limit
Investment income must be $3,600 or less for the year.
Maximum Credit Amounts
The maximum amount of credit for Tax Year 2019 is:
- $6,557 with three or more qualifying children
- $5,828 with two qualifying children
- $3,526 with one qualifying child
- $529 with no qualifying children