Earned Income Tax Credit (EITC)

What is the Earned Income Credit (EITC)?
The EITC, is a tax credit that reduces the amount of tax you owe and may give you a refund. This credit is for people who have earned income from working for someone or is self-employed.

Why EITC is Important?
The EITC is one of the Largest Antipoverty Programs. The EITC and the child tax credit (CTC) reduces poverty for working families. These credits lifted an estimated 9.1 million people out of poverty, of which more than half were children.

Basc EITC Eligibility Requirements
All Workers Claiming the EITC Must:

  • Have a valid Social Security number,
  • Have earned income,
  • Meet the adjustable gross income limits,
  • Not file From 2555 or Form 2555-E (related to Foreign Earned Income),
  • Meet the investment income limitation,
  • Filing status CANNOT BE “Married filing Separate,”
  • Not be the qualifying child of another person,
  • Generally, be a U.S. citizen or resident alien for the entire year.

    • To claim this EITC with a qualifying child, the child must meet the relationship, age, residency and joint return requirements. For more information bout this requirement, please visit the IRS website at https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit.

    SC Legal Services Low Income Taxpayer Clinic can assist you if you have a federal tax problem with the IRS. Our services are free for qualifying applicants.

    To apply for our services, please call 1(888) 346-5592. You can also apply for assistance online by clicking here.

    The IRS estimates that four our of five eligible taxpayers receieve their EITC.

    Nationwide during 2018, 25 million eligible workers and families received about $63 billion in EITC. The average amount of EITC received nationwide was about $2,488.

    Income and family size determine the amount of the EITC a taxpayer can receive.

    The income amounts and the amount of EITC are adjusted for inflation every year.

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