Following are the calculations of the Earned Income Credit according to this year’s laws.
If you file without children and you are younger than 25 years, then you’re not eligible to the E.I.C.
The earnings are calculated according to the date on the check; not the date you worked.
In order to avoid frustration, it is important to save every document regarding your earnings, i.e., bank statements, paystubs, etc.
The 2015 Earned Income Tax credit (EITC) figures reflect some minor increases over the 2014 EITC amounts and qualifying limits as a result of mandated inflation adjustments. This is in line with other 2015 tax changes.
How to read the tables above. The maximum amount of the earned income credit allowed for 2015 is shown in line 1. To claim this credit you must have at least $1 of earned income, with line 2 showing the amount of earned income required to get maximum credit. The “Phaseout Threshold Amount Begins“ (lines 3 and 5 depending on filing status) and “Phaseout Amount When Credit Ends” (lines 4 and 6 depending on filing status) are the adjusted gross income (AGI) ranges from where the EITC begins to phase out to where it reaches $0, or the income at or above which no credit is allowed. These income ranges change depending on the filing status and number of children.
Earned income includes all the taxable income such as Wages, salaries, and tips, certain disability benefits and self-employment earnings.
The above mentioned amounts only include the tax credits that depend in your earnings (not the other credits- tuition, rent, etc.)