What is Earned Income Credit?
Earned income credit is a refundable credit that may be available to you if you are a lower-income worker and meet other certain criteria. Income requirements to qualify for the credit is as follows: • Your earned income is no more than $27,413 and have one child • Your earned income is no more than $31,152 and have two or more children • Your earned income is no more than $10,380 and have no children, are between the ages of 25 and 65 and cannot be claimed as a dependent on anyone else’s tax return Earned income does not include the following: • Alimony or child support • Pensions or annuities • Unemployment insurance • Welfare benefits • Social security benefits • Interest and dividends • Veteran’s benefits However, if you have over $2,350 in disqualified income (interest, dividends, rent and royalty income, and net gain capital income), the credit can no longer be claimed. If you have a child, the child must be your natural child, adopted child, stepchild or foster child.
