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To claim the Earned Income Tax Credit (EITC), you must have what qualifies as earned income and meet certain adjusted gross income (AGI) and credit limits for the current, previous and upcoming tax years. Use the EITC tables to look up maximum credit amounts by tax year.
See the instructions for line 16 to see if you must use the Tax Table below to figure your tax. Please click here for the text description of the image. Example. A married couple are filing a joint return. Their taxable income on Form 1040, line 15, is $25,300. First, they find the $25,300-25,350 taxable income line.
The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families get a tax break. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund.
See the earned income and adjusted gross income (AGI) limits, maximum credit for the current year, previous years and the upcoming tax year.
Who is eligible for the Earned Income Tax Credit? You may be eligible for the EITC if you have a low income. The amount of credit you get when you file your return can depend on whether you have children, dependents, or a disability. However, you may still be able to claim the EITC even if you do not have a qualifying child.
Once you determine that you qualify for the credit, use the Earned Income Credit table found in the instructions for Form 1040 to look up your income and find out the amount of credit you're entitled to.
Additonal child tax credit amount increased. The maxi-mum additional child tax credit amount has increased to $1,600 for each qualifying child. New clean vehicle credit. The credit for new qualified plug-in electric drive motor vehicles has changed. This credit is now known as the clean vehicle credit. The
The earned income tax credit (EIC or EITC) is for low- and moderate-income workers. See qualifications and credit amounts for 2024-2025.
What Is the EIC? The EIC is a tax credit for certain people who work and have earned income under $63,398. A tax credit usually means more money in your pocket. It reduces the amount of tax you owe. The EIC may also give you a refund. Can I Claim the EIC? To claim the EIC, you must meet certain rules. These rules are summarized in Table 1. Table 1.
Turn to the Earned Income Table in the Volunteer Resource Guide, Tab I, Earned Income Credit, for examples of earned income. One type of payment considered earned income is “taxable long-term disability benefits received prior to minimum retirement age.” Refer to the Retirement Income lesson earlier for additional information.
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