The Earned Income Tax Credit can give qualifying workers with low-to-moderate income a significant financial boost. Aside from reducing the amount of tax someone owes, it may also give them a refund even if they don’t owe any taxes or don’t need to file a return. People must meet certain requirements and file a federal tax return in order to receive this credit.
Who is eligible?
- A taxpayer’s eligibility for the credit may vary from year to year, so it’s a good idea for people to use the IRS’ EITC Assistgant to see if they qualify.
- Eligibility can be affected by major life changes such as:
- a new job or loss of a job.
- unemployment benefits.
- a change in income.
- a change in marital status.
- the birth or death of a child.
- a change in a spouse’s employment situation.