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mzarna
New Member

How is the earned income tax credit calculated?

 
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2 Replies

How is the earned income tax credit calculated?

It is based on how much you earned from working, whether you have children as dependents--how many children -- your filing status...

 

Use the interactive assistant from the IRS site:

 

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-e...

 

 

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
SharonD007
Employee Tax Expert

How is the earned income tax credit calculated?

For 2023, the EITC is based on the income you earned working in 2023.   See the link “What is earned income?” to determine if you have earned income.

 

In addition to having earned income, you must meet other criteria to qualify for the EIC:

  • Be a U.S. citizen or resident alien for the entire year
  • Have a valid Social Security number for yourself, your spouse (if Married Filing Jointly), and any children that qualify you on your tax return
  • Not file Form 2555 or 2555-EZ (Foreign Earned Income)
  • Meet certain rules if you are married but are separated from your spouse and filing separate tax returns
  • Have investment income below $11,000
  • Your income must be less than $63,398 (depends on your filing status and number of qualifying children)

There are other special qualifying rules. See the IRS link, Who qualifies for the Earned Income Tax Credit?  You can also review the TurboTax help article What are the qualifications for the Earned Income Credit? and What is the Earned Income Credit? Find Out If You Qualify.

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