Maximize your refund with the Earned Income Tax Credit (EITC)!
The EITC is a powerful tax credit that can significantly boost your refund, especially if you have qualifying children. In 2021, the maximum EITC amount was $7,430 for families with three or more qualifying children. But even if you don’t have children, you could still be eligible for a credit of up to $600.
So, how much EITC will you get in 2021?
It depends on your income filing status and the number of qualifying children you have. Here’s a quick breakdown:
| Number of qualifying children: | Single workers with income less than: | Married workers with income less than: | EITC up to: |
|---|---|---|---|
| 3 or more children | $56,838 | $63,398 | $7,430 |
| 2 children | $52,918 | $59,478 | $6,604 |
| 1 child | $46,560 | $53,120 | $3,995 |
| No children | $17,640 | $24,210 | $600 |
Remember, these are just estimates. Your actual EITC amount may be higher or lower depending on your specific circumstances.
Here are some additional things to keep in mind:
- You cannot get the EITC if you have investment income of more than $11,000 in 2021.
- You must have a valid Social Security number for yourself, your spouse, and any children claimed for the EITC.
- You cannot claim the federal EITC if you file your taxes with an Individual Taxpayer Identification Number (ITIN).
- Many states have their own version of the federal EITC that can add more money to your tax refund.
How to claim the EITC:
To claim the EITC, you must file a tax return. If you are claiming a child for the EITC, you also need to submit “Schedule EIC”.
Free options for filing your taxes:
- Volunteer Income Tax Assistance (VITA): Get your taxes filed for free by IRS-certified volunteers.
- GetYourRefund.org: Another option for free tax filing with IRS-certified volunteers.
- MyFreeTaxes.com: File your own taxes for free online.
Don’t miss out on this valuable tax credit!
If you think you might be eligible for the EITC, be sure to claim it when you file your taxes. It could mean a significant boost to your refund.
Additional resources:
- Tax Outreach: Learn more about the EITC and other tax credits.
- IRS EITC Assistant: Use this tool to see if you qualify for the EITC and estimate your credit amount.
- State EITC map: Find out if your state has a state-level EITC.
Let’s maximize your refund together!
Does my child qualify?
To qualify, the child has to be:
- Your son, daughter, stepchild, adopted child or a descendant.
- Your foster child, placed under court order or by an authorized agency
- Your sister, brother, stepsister, stepbrother, or a family member of any of these
- 18 years of age or less at the end of the year (unless the child is enrolled full-time, in which case the student must be 23 years of age or less) Exception: No matter how old, a person who is completely and permanently disabled at any point throughout the year is eligible.
- a person who lives with you in the US for more than half the year
You and your sister live together. You are 30 and your sister is 15. You took up your sister’s care after your parents passed away two years ago, but you did not adopt her. She is considered a qualifying child because she lived with you more than half of the year.
You typically qualify if:
- You receive money from your earnings (such as a job, your own company, benefits from union strikes, and some long-term disability benefits).
- In 2023, your total investment income (interest, dividends, rent, royalties, and proceeds from the sale of stocks and other assets) did not exceed $11,000. This increases to $11,600 for 2024.
- You don’t use the Married Filing Separate status if you’re married, or you’re single (though there will be an exception for married couples filing separately in 2021).
- Your Social Security number is shared by you, your spouse, and any children, if applicable.
- You and your partner are not regarded as the other person’s qualifying child.
- Any money you made abroad is not deducted from your return taxes.
- You are a citizen or resident of the United States.
- You are either a parent and have dependents, or you are not a parent and have been a resident of the United States for more than half of the year, and you are at least 25 years old but under 65.
Earned Income Tax Credit (EITC) Explained
FAQ
How do I calculate earned income credit?
What is the average earned income credit 2021?
|
State
|
Number of EITC Claims
|
Average EITC Amount
|
|
CALIFORNIA
|
3.3 M
|
$1,857
|
|
COLORADO
|
430 K
|
$1,796
|
|
CONNECTICUT
|
270 K
|
$1,847
|
|
DELAWARE
|
91 K
|
$2,014
|
How much qualifies you for earned income credit?
What are the changes to the Earned Income Credit from 2021 to 2022?
When can I use my 2019 or 2021 earned income?
For tax year 2020, the CAA allows taxpayers to use their 2019 earned income if it was higher than their 2020 earned income in calculating the Additional Child Tax Credit (ACTC) as well as the Earned Income Credit (EIC). For 2021, you are allowed to use your 2019 or 2021 earned income based on whichever one gives you the highest credit.
What is the earned income tax credit (EITC)?
FS-2022-14, March 2022 — This Fact Sheet provides frequently asked questions (FAQs) for Tax Year 2021 Earned Income Tax Credit. More people without children now qualify for the Earned Income Tax Credit (EITC), the federal government’s largest refundable tax credit for low- to moderate-income families.
Do I qualify for the earned income tax credit?
January 28, 2021 If you have low-to-moderate income, the earned income tax credit can give you a substantial financial boost. Your eligibility can change from year to year, so it’s a good idea to use the EITC Assistant to find out if you qualify. You qualify based on your income and the filing status you use on your tax return.
Are you eligible for the earned income tax credit 2023?
If you don’t have eligible dependents, you can get a maximum credit of $600, up from $560 for tax year 2022. The IRS estimates that 20% of taxpayers who qualify for the EITC never claim it. Here’s how to learn if you’re eligible to take the credit on your 2023 tax return, due April 15, 2024. What Is the Earned Income Tax Credit?