Earned Income Credit

How do I not qualify for EIC if I am low income


Hello bonniespect,

To qualify for Earned Income Credit depends on a few factors.  The most common reasons why people don't get the Earned Income Credit (EIC) are that their income is too high, they had investment income over $3,300, they didn't have any earned income (income from a job), or your dependent did not qualify for the credit. Another automatic reason for not qualifying would be if you are Married Filing Separate. Assuming you are not filing married filing separate here are what qualifies for Earned Income Credit.

No Qualifying Children:

You (or your spouse if filing Married Filing Jointly), must be at least age 25 but under age 65 to qualify for the EIC if you do not have a qualifying child.  Age for the EIC is your age on the last day of the year. If you are filing as Single your income would need to be less than $14,300 or if Married Filing Jointly less than $19,650 when you do not have any qualifying children..

What is the EIC or EITC and Do I Qualify?

The Earned Income Tax Credit (EITC or more commonly, EIC) is a tax credit for working people with low or moderate income who have earned income. The amount of the credit depends on your filing status and exactly how much you earned.

If you qualify, you could pay less federal tax or even get a tax refund, but you must file a tax return. Some general requirements include:

  • You and any qualifying child must have a valid Social Security number. (Individual Taxpayer Identification Numbers, or ITINs, do not qualify.)
  • Your filing status cannot be married, filing separately.
  • You cannot have investment income greater than $3,300 for 2013
  • You must be a U.S. citizen or resident alien for the entire year.
  • You must have earned income from employment or self-employment.

TurboTax will calculate the credit and prepare the proper forms based on the information you provide. For more help determining if you are eligible for the EIC, you can use the IRS Earned Income Tax Credit (EITC) Assistant.

What kind of dependents do I need? How old do dependents have to be? How many dependents can I use?

What kinds of dependents qualify?: The IRS uses Qualifying Children to determine the amount of the credit. To be your qualifying child for the EIC, a relative must have a valid Social Security Number and pass all the age, relationship, residency and joint return tests. Your relative must be your son, daughter, adopted child, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendent of any of them.

How old do dependents have to be?: Qualifying Children must be under age 19 at the end of the year or under age 24 at the end of the year if a student. However, there is no age limitation on a qualifying disabled child.

How many dependents can you use?: The EIC stops increasing once you have three qualifying children.

For more answers to common EIC questions, see the IRS Earned Income Tax Credit (EITC) Assistant.

I hope this helps.

Thank you for choosing TurboTax.

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