The Earned Income Tax Credit (EITC) is a significant tool established by the Internal Revenue Service (IRS) for low- or middle-income workers who meet certain requirements to claim it. If you are thinking about applying for this tax credit, the first thing you should know is what the requirements are to determine if you meet them and can apply.
To get started, who can qualify for the EITC? Generally speaking, workers with qualifying children who earn income within certain parameters might be eligible for this IRS tax credit. However, you may be able to claim the EITC on your tax return even if you don’t have children, and we’ll expand on how to do that if this is your case.
Qualifying Income to Claim the EITC Tax Credit
The basic income to qualify for the IRS EITC includes having worked and earned income of less than $63,398, having investment income of less than $11,000 in the 2023 tax year. Also, you must possess a valid Social Security number by the filing deadline of your 2023 return and be a U.S. citizen or legal resident alien for the entire year. Form 2555 (for foreign earned income), and meet certain rules if you are separated from your spouse and do not file a joint tax return.
Additionally, the EITC has special requirements for certain groups which are as follows:
- Members of the militia
- Members of the clergy
- Taxpayers and their relatives who have disabilities
EITC Tax Credit Requirements Explained
To get started with your EITC claim application, you must have a valid social Security number. That means the SSN must be valid for employment purposes and must have been issued before your tax return filing deadline. Regarding the marital status for the purposes of the return, it is a circumstance to be considered by the IRS when granting the EITC.
You can currently use different filing statuses to qualify for this tax credit, such as married filing jointly, head of household, qualifying surviving spouse, single or married filing separately. Each marital status has specific requirements that you must meet to qualify.
If you’re married but don’t file a joint return, you may still be eligible to file for the EITC if you had a qualifying child who lived with you for most of 2023 and you meet certain conditions; for example, living apart from your spouse for the last six months of the year or being legally separated under the laws of your permanent resident state.
Another marital status considered for the EITC is head of household status, which you can claim if you are unmarried and pay more than half of the costs of maintaining your home where you live with your qualifying child. This marital status has specific requirements that you must meet to qualify. Surviving spouses can claim the EITC Tax Credit
Those who have lost a spouse can file as a qualified surviving spouse as long as they meet the criteria established for this category. They must have filed a joint return with the deceased spouse, not remarried before the end of the year in which they are claiming the EITC, show that they take care of household maintenance (having paid more than half of these costs during the tax year) and that they have at least one qualifying child.
How Long Does It Take for the EITC to Be Approved and Sent?
Although it is true that the deadline to file a federal tax return for the 2023 tax year and apply for a Tax Credit was April 15, 2024, you can still be part of this tax credit if you have not done so. If you didn’t file your tax return on time, you can still file a late tax return. Keep in mind that you could have fines for having done it past the deadline, but you can still take advantage and claim your EITC if you meet the requirements.
If you already filed your tax return on time and form before April 15, 2024, and you think you qualify for the EITC, you can file an amended tax return. You can do this by using Form 1040X. If you’re eligible for the EITC but don’t owe taxes, you can apply for an EITC refund using Form 8812.
