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February 25, 2020
Question

Who qualifies me for earned income credit?

  • February 25, 2020
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macuser_22
Employee
February 25, 2020

You and your income qualifies you.   The amount of EIC is determines by how many Qualify Child dependent that you have, but you can get EIC without any dependents at all depending on income.

 

You can get to the Earned Credit Interview by entering "eic" (without the quotes) in the Tools -Search Topics box.

Earned Income Credit (EIC) is paid on a bell curve - starts low for a low income, increases to the maximum as income increases, then phases out as income increases still further until it is gone at the maximum income. You only get the maximum EIC if your income is about midway between no income and the maximum income.

EIC is calculated both on the amount of earned income and your AGI and you get the lessor of the two.

EIC will be found on line 18a on the 1040 form.

The credit is calculated on the EIC Worksheet that can be viewed in the forms mode in desktop versions and print all forms and worksheets in the online versions.

2019 Earned Income and Adjusted Gross Income (AGI) must each be less than:
$50,162 ($55,952 married filing jointly) with three or more qualifying children
$46,703 ($52,493 married filing jointly) with two qualifying children
$41,094 ($46,884 married filing jointly) with one qualifying children
$15,570 ($21,370 married filing jointly) with no qualifying children

The credit will vary from $0 to the maximum depending on income and AGI see EIC table.
Tax Year 2019 maximum credit:
$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


Investment income must be $3,500 or less for the year.

EIC Table page 46
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf


You must be at least 25 if you do not have a qualifying child, and under 65 years of age at the end of 2018.

See IRS Pub 596 for complete information:
http://www.irs.gov/publications/p596/index.html

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**