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IRS: Earned Income Tax Credit explained

Americans everywhere are submitting their tax returns to the IRS, but many more will qualify for the Earned Income Tax Credit, or EITC, this year.

tax return Americans submit to the IRS to claim things like the Earned Income Tax Credit, or EITC

The credit is available to low to moderate income workers and their families.

Normally you need to have children to qualify, but that is not the case this year.

In order to claim, you and your spouse need to be citizens.

If you’re a resident that was in the country for at least 6 months of the year and have a valid SSN you can use this credit.

Free tax filing options with the IRS

Qualifying for the IRS’ EITC

  • Income must be below $57,414
  • Investment income must be under $10,000
  • Have a valid SSN
  • Be a U.S. citizen or resident alien
  • Cannot file Form 2555
  • You need at least $1 of earned income
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There are special rules in place for the 2021 tax season.

Depending on your filing status, your credit will range from $1,502 to $6,728.

Military members, clergy members, and taxpayers that have relatives with disabilities can qualify.

Everyone on your tax return you’re claiming needs to have a SSN.

You may file married filing jointly, head of household, qualifying widower, single, or married filing separate.

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How much will my EITC from the IRS be?

The filing status and number of dependents you have will impact the amount you get back.

If you have no children the max you will see is $1,502 if head of household made under $16,480 or married joint taxpayers made under $22,610.

One child will see a maximum of $3,733 if single or HOH filers made under $43,492. If married filing jointly the threshold is $49,622.

Two children can see a maximum of $6,164 if the filer is single and making less than $49,399. Married filers have a threshold of $55,529.

Finally, three or more children can see as much as $6,935. A single filer or HOH must make below $53,057 and joint filers below $59,187.

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