What is an Earned Income Credit?
An earned income credit is a credit that grants a refund of federal income taxes. There are also forms of earned income credit available at some state levels, and even within some municipalities. Although the earned income credit is rather small for individuals who have no children, for individuals with children, the credit can be fairly substantial. The main purpose of the earned income credit is to address matters of poverty, by providing a credit that offers a great deal of relative relief to those who make small amounts of earned income each year. In the United States, the earned income credit is available both for qualifying individuals with children, and those without. For those without children the credit is rather small, with a maximum of $438 US Dollars (USD) for those with an income between $5,596 and $6,999 USD. Those making less or more than this bracket have a smaller earned income credit, and there is no available credit for those making more than $12,590 USD. For those w
An earned income credit is a credit that can be claimed by workers with qualifying children who meet certain income requirements. The EIC can be up to $2,574 for one child, and $4,205 if you have more than one child. To qualify, you must have an adjusted gross income of under $29,666, or $30,666 if married filing jointly if you have one qualifying child, or $33,692, or $34,693 if married filing jointly, if you have more than one child. The child had to live with you more than six months during the year, you must file a joint return if you are married to qualify, and you are not a qualifying child of another person.
