General Info & FAQ

For Federal Tax Returns without any qualifying children that qualify for the Earned Income Credit.

• The credit automatically calculates and will be included in the return.

For Federal Tax Returns with one or more qualifying children that qualify for the Earned Income Credit:

• Answer all required questions located in the Dependent and Household Member Listing Page.

You CAN NOT take the Earned Income Credit if:

• You have an ITIN.
• Your filing status is not Married Filing Separately.
• You have Investment Income exceeding $3,400. (2016)
• Not be filing a Form 2555 or 2555-EZ.

Note:

• EITC has special rules for members of the Military, members of the Clergy, and taxpayers with certain types of Disability Income or Children with Disabilities.

What is Considered Earned Income for EIC Purposes?

Earned income includes all the taxable income and wages you get from working or from certain disability payments.

Taxable earned income includes:

• Wages, salaries, tips, and other taxable employee pay;
• Union strike benefits;
• Long-term disability benefits received prior to minimum retirement age;
• Net earnings from self-employment if:
• You own or operate a business or a farm or
• You are a minister or member of a religious order (see IRS website for mnore information on the Special Rules that apply).
• You are a statutory employee and have income. (See IRS website for more information).
• Nontaxable Combat Pay election. You can elect to have your nontaxable combat pay included in earned income for EITC. The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. Electing to include nontaxable combat pay in earned income may increase or decrease your EITC. See Publication 3. Armed Forces Tax Guide, for more information.
• See EIC question on Income Limits for more information on qualifying for the EIC.

Is a ITIN the same as a SSN?

No. Taxpayers who have an ITIN do not qualify to take the Earned Income Credit on their tax return. Regardless if the ITIN belongs to the taxpayer, spouse, or dependent.

What Are The Qualifications For Taxpayers With A Qualifying Child?

• Your child must have a Social Security number that is valid for employment that is issued before the due date of the tax return (including extensions) and must pass all of the following tests to be your qualifying child for EITC.

To qualify for the Earned Income Credit with child:

The child must be your qualifying child.

The IRS has the following information on who a Qualifying Child is:

Relationship

• Your son, daughter, adopted child1, stepchild, foster child2 or a descendent of any of them such as your grandchild
• Brother, sister, half brother, half sister, step brother, step sister or a descendant of any of them such as a niece or nephew

Age

• At the end of the filing year, your child was younger than you (or your spouse if you file a joint return) and younger than 19
• At the end of the filing year, your child was younger than you (or your spouse if you file a joint return) younger than 24 and a full-time student
• At the end of the filing year, your child was any age and permanently and totally disabled.

Residency

• Child must live with you (or your spouse if you file a joint return) in the United States4 for more than half of the year.

Joint Return

• The child cannot file a joint return for the tax year unless the child and the child's spouse did not have a separate filing requirement and filed the joint return only to claim a refund.