This tax benefit is provided by the US government to support low and moderate-income working individuals and families. The EITC is designed to reduce the amount of taxes owed and, in some cases, provide a refund to eligible taxpayers Here’s a helpful blog to learn more.
Be sure to tap on the EITC section when in the "Credits and deductions" section and our tax team will figure out whether you qualify.
Things to remember:
- The EITC is a refundable credit, which means that if the credit exceeds the amount of taxes owed, you may receive a refund. Generally, the credit increases as the number of qualifying children increases, up to a certain limit.
- To qualify for the EITC, you must meet certain requirements, including:
a. Having earned income from working for someone else or running your own business.
b. Meeting specific income limits. The income limits vary based on your filing status, and the number of qualifying children you have.
c. Filing a tax return, even if you’re not otherwise required to do so.
- The amount of the credit gradually decreases as your income goes up, depending on your filing status and the number of qualifying children you have. A qualifying child must meet certain criteria, including age, relationship, residency, and dependency requirements. It's important to check the current income limits and phase-out ranges to determine your eligibility for the credit.
- Much like the Child Tax Credit, we'll take the information you include on your return to determine your eligibility for this credit. If you qualify, we'll automatically include it on your return when you file.