Do I Qualify For Earned Income Credit?

Do I qualify for earned income credit?

The question “do I qualify for earned income credit?” is one that bothers so many people. Many people are confused because they don’t know whether or not they qualify for the unearned income credit. Before we look at the conditions that have to be met for one to claim unearned income credit, let us shed more light on it. Earned income credit also known as earned income tax credit (EITC) refers to a benefit that people with low or moderate incomes are entitled to. The benefit is always in less tax that one owes or in terms of a refund that one can claim as tax credit.

There are a number of qualifications that need to be met for one to qualify for the earned income tax credit. So, if you are asking, “do I qualify for earned income credit?” you should find out what qualifications you have first. The IRS provides a lot of information on who qualifies for the EITC and how they should go about it. The first thing that those who want to claim EITC should have is a social security number. This is will be used for the processing of the EITC and confirm that indeed you deserve it.

As the name suggests, it is earned income tax credit. This means that the second logical answer to the question “do I qualify for earned income credit?” is that as long as one has an earned income. It would not make sense for people without earned income to want to claim EITC when the tax credit is only meant for people with earned income. One must therefore be an employee of someone else or running a business of their own from which they can prove to have earned income before claiming for earned income tax credit.

For one to qualify for the earned income tax credit, they have to be United States citizens. It would be folly for citizens of other countries to want to claim the EITC. For individuals who are not citizens of the United States, they may still ask themselves “do I qualify for earned income credit?” It depends. If one is not a US citizen then they will have to be a resident alien all year, a non-resident alien who is married to a U.S. citizen or a resident alien filing a joint return. Individuals who therefore do not meet these conditions cannot apply for the earned income tax credit.

If one is a qualifying child for another person, they cannot themselves qualify for the earned income tax credit. For one to be a qualifying child, they must be aged between 25 to 60, live in the U.S. for more than half the year and not be a dependent on another person. To qualify for the earned income tax credit, one also needs to confirm that they meet the expected income limits to earn EITC or any other conditions stipulated by the IRS. Therefore, for individuals asking “do I qualify for earned income credit?” the above information should be of great heal to them. They can also go through the internet to get additional information.