Earned Income Tax Credit: Eligibility and Application Procedures

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Jhe Earned income tax credit is a refundable tax credit for workers with modest low incomes.

You may qualify for the EITC even if you cannot claim children on your tax return.

To claim the EITCyou and your spouse (if filing jointly) must be US citizens or residents.

However, if you or your spouse were a non-resident for any part of the tax year, you can only claim EITC if your filing status is married, joint filing and you or your spouse are a US citizen with a valid social security number.

me you are a resident who was in the United States at least 6 months of the year with a valid social security number, you may also qualify.

Who can benefit from the earned income tax credit?

– Have worked and earned an income of less than $57,414

– Have investment income of less than $10,000 for the 2021 tax year

– Have a valid social security number on your 2021 return due date (including extensions)

– Be a U.S. citizen or year-round resident alien

– Not filing Form 2555 (related to foreign earned income)

– You must have at least $1 earned income (pensions and unemployment do not count).

Who has special qualification rules for the EITC?

For the Tax year 2021earned income credit ranges from $1,502 at $6,728 it depends on tax status, income and number of children. People without children can qualify.

-Military

-Clergy

-Taxpayers and their relatives with disabilities

How to benefit from the earned income tax credit?

Valid social security number

To be eligible for the EITC, everyone you claim on your taxes must have a valid Social Security Number (SSN). To be valid, the SSN must be:

– Valid for employment

– Issued before the due date of the tax return you plan to claim (including extensions)

The IRS accepts Social Security cards marked “Valid for work with DHS authorization.”

Filing status

n 2021, to benefit from the EITC, you can use one of the following statuses:

– Married filing jointly

– Head of household

– Eligible widow or widower

– Only

– Separate married file

However, you can also apply for the IEC if you are married, do not file a joint return, have an eligible child who has lived with you for more than half of 2021.

for example, you can also apply under these circumstances:

– If you have lived apart from your spouse for the last 6 months of 2021

– If you are legally separated under your state law under a written separation agreement or separate maintenance decree and you were not living in the same household as your spouse at the end of 2021

head of household

You can claim the head of household filing status if you are unmarried and paying more than half of the maintenance costs of your home where you live with your qualifying child.

What is the income limit for the Earned Income Credit?

For taxes due in April 2022:

– People with no children can earn a maximum of $1,502 if the single filer or head of household earned less than $16,480 or if married joint filers earned less than $22,610 in adjusted gross income.

– 1 Child= $3,733 maximum EITC

Single filers or household heads earned less than $43,492

Married joint filers earned less than: $49,622

– 2 Children= $6,164 maximum ISIC

Single filers or household heads earned less than: $49,399

Married joint filers earned less than: $55,529

– 3 or more children= $6,935 maximum EITC

Single filers or household heads earned less than: $53,057

Married joint filers earned less than: $59,187


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