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getmoneynow2-
New Member

How do I check if I qualify for the eic since the unemployment tax break changes were made?

With the 10,200 unemployment tax credit, how do I know if I now am eligible for the EIC?
2 Replies
Mike9241
Level 15

How do I check if I qualify for the eic since the unemployment tax break changes were made?

requirements
1)must have earned income - generally taxable employee compensation or net self-employment income.
2) investment income less than $3,650
3) if married must file a joint return
4) taxpayer, spouse if married, and children must have valid SSN's. ITINs and ATINs don't qualify
5) taxpayer, or spouse if married, must not be the qualifying child or relative of another taxpayer
6) must not take the foreign earned income exclusion
7) a taxpayer who is a nonresident alien for any part of the tax year generally doesn't qualify
😎 adjusted gross income limits
a) with 0 children the Adjusted Gross income must be less than $15,820 or $21, 710 if filing jointly. taxpayer must be between the ages of 25 and 65. if married either spouse can meet this requirement and the main home must be in the US for more than 1/2 the year
b) with 1 child the numbers are $41,756 and $47,646, respectively
c) with 2 children the numbers are $47,440 and $53,330, respectively
d) with 3 or more children the numbers are $50,954 and $56,844, respectively
9) if 8b, c, or d apply must file Schedule EIC.
10) there are special rules for military personnel stationed outside of the US IRS PUB 596
11) if there are qualifying children the support test does not apply, the children must have lived with the taxpayer for more than 1/2 the year, and the rules for children of divorced or separated parents don't apply

 

 

look at pub 596 a worksheet starts on page 24

https://www.irs.gov/pub/irs-pdf/p596.pdf

 

 

Hal_Al
Level 15

How do I check if I qualify for the eic since the unemployment tax break changes were made?

Try this tool:  https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1

When asked to enter unemployment, enter $10,200 less than you actually got. 

 

The earned income credit is first calculated (actually looked up in a table) on your earned income then it is calculated on your total income (AGI). You get the lesser of the two calculated EIC numbers. So, the lowering of your AGI, by $10,200 could result in more EIC.

 

See the  EIC table at:

https://apps.irs.gov/app/vita/content/globalmedia/earned_income_credit_table_1040i.pdf 

 

 

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