ANSWERS: 1
  • The EIC, or Earned Income Credit, is a tax credit for people who are working but making lower wages. The Earned Income Credit reduces the amount of tax you owe, and can result in a tax refund when you wouldn't otherwise have one.

    Earnings

    You must have earned income for the tax year in question and it must be within the limitations set forth by the IRS each year for your filing status.

    Residency

    You must have been a U.S. citizen or a resident alien for the entire tax year, or be a non-resident alien married to a U.S. citizen and filing a joint return.

    Filing Status

    You cannot claim the Earned Income Credit if you file your tax return as Married-Filing Separately. If you are married, you must file a joint return to qualify for the credit.

    Qualifying Child

    You must have a qualifying child or meet other age and residency restrictions. You must also be ineligible to be claimed as a qualifying child on another person's return.

    Foreign Income

    If you are claiming any foreign earned income exclusions, you may not qualify for the Earned Income Credit.

    Source:

    IRS.gov

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