Earned Income Tax Credit (EITC): eligibility and benefits

The Earned Income Tax Credit can provide a tax break to working people with low to moderate incomes. Keep reading to learn more!


Earned Income Tax Credit (EITC): Earn up to $6,935 back

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Earned Income Tax Credit (EITC): eligibility and benefits. Source: Adobe Stock

The Earned Income Tax Credit (EITC) is a powerful tool that allows families and individuals to keep more of the money they earn.


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Understanding how to qualify for the EITC and how it works is key. Let’s examine why it’s important to investigate its eligibility requirements.

What is the Earned Income Tax Credit and how does it work?

The Earned Income Tax Credit (sometimes referred to as the Earned Income Credit) is an incredibly important and valuable tax credit.

Additionally, it can range from $560 to $6,935 for 2023 taxpayers, depending on filing status, income, and the number of children a person has.

The even better news is that people without children may still be eligible for this credit.

Therefore, if you fit within the guidelines for the EITC, make sure to claim it on your taxes and ensure you receive the maximum benefits available.

The IRS always encourages taxpayers to file an amended return and get back what they’re entitled to.

Benefits of the Earned Income Tax Credit 

The Earned Income Tax Credit (EITC) benefits taxpayers of all ages, making it a useful resource for those on a budget.

However, for the 2022 tax year (the tax return you’ll file in 2023), the credit ranges from $560 to $6,935, depending on your filing status and how many children you have.

Furthermore, even if you don’t have any children, you can still qualify for the EITC.

In addition to reducing the amount of money owed in taxes, the EITC can also result in a refund for eligible taxpayers.

Moreover, recipients should note that refunds associated with EITC claims will not be issued until mid-February, as required by law.

Who qualifies for the EITC?

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Learn who qualifies for the EITC. Source: Adobe Stock

You must work and earn income to qualify for Earned Income Tax Credit (EITC). You must have a valid Social Security number (or Taxpayer Identification Number).

After all, this allows work-related activities for yourself, your spouse, or any children you claim the EITC for in your care.

Moreover, to be considered a qualifying child for the EITC, they can either have a valid Social Security Number or not.

If you are married and filing separately, you may still be eligible if your qualifying child lives with you for more than half the year.

Finally, the Earned Income Tax Credit is available to many hard-working individuals who strongly believe in providing a better life for themselves and their families.

How do I know if my child qualifies for me to receive the EITC?

The Earned Income Tax Credit (EITC) is an important tax benefit for working families with children. To qualify, your child must pass three tests: relationship, age, and residency.

Specifically, their relationship to you must be as a son, daughter, grandchild, stepchild, or adopted child.

And more: younger sibling, step-sibling, half-sibling or their descendent, or a foster child placed with you by a government agency.

Additionally, the child must be under 19 years old, under 24 if a full-time student, or any age if totally and permanently disabled.

Lastly, they must need to live with you in the United States for more than half the year – time living together doesn’t have to be continuous.

The word medicaid written on a white notepad on a blue background near a stethoscope, syringe, electronic thermometer and pills. Medical concept


Are you looking for information about Medicaid? If so, read our post to learn all about it and its pros and cons!

How can you claim the EITC on your tax return?

The Earned Income Tax Credit (EITC) is a powerful tax credit that provides additional money to those who qualify.

To claim the EITC, you must file a tax return. If you claim a child for the EITC, you must submit a “Schedule EIC.”

Fortunately, many options are available for taxpayers who don’t have the means to visit a paid tax preparer.

One option is Volunteer Income Tax Assistance (VITA), where IRS-certified volunteers help individuals qualify.

Finally, for those looking to do their taxes with no self-employment income, provides free online filing services.

What can happen if an error is related to the Earned Income Tax Credit form?

Getting an error on your tax form can lead to serious consequences. When errors occur, it can often result in your entire EIC refund being denied.

As well as having to repay any amount that has been erroneously paid out.

Additionally, the IRS could even determine further punishment of not only disallowing the EITC for up to two years.

This occurs due to a reckless disregard for rules. Also, a ten-year ban if they find there was fraud involved.

To ensure trouble-free claim filing and processing, double-checking your work and the accuracy of all submitted forms is invaluable.

Meet other welfare programs: Temporary Assistance for Needy Families (TANF)

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Meet other welfare programs. Source: Adobe Stock

Temporary Assistance for Needy Families (TANF) is an alternative to the Earned Income Tax Credit (EITC).

This program allows struggling families to access emergency cash benefits and other support services.

Furthermore, the money from TANF can be used for housing, clothing, and food, among other necessities. The eligibility requirements vary from state to state.

But, low-income individuals who have children or belong to certain vulnerable groups are typically eligible.

Keep reading to learn more about Temporary Assistance for Needy Families and whether you’re eligible.

Temporary Assistance for Needy Families (TANF)

Do you know what Temporary Assistance for Needy Families (TANF) is? It is a social program that lifts families out of poverty. Read on!

About the author

Sabrina Paes

Content Writer, Copywriter, and Ghostwriter. Content marketing professional with 5 years of experience. Specialist in investment, finance, and technology niche. MBA in Marketing at the University of São Paulo, Brazil. Content Writer by Rock Content, and University of California (UCDAVIS).

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