We’re in the depths of tax season and we’ve been answering your questions that have come up on our AnswerXchange forum.
We’ve seen questions surrounding the EIC or EITC pop up and we’re here to help. If you believe you qualify for the EIC or EITC or want to learn more about it, read on for more information.
Q: What is the EIC or EITC, and do I qualify?
A: First things first, EITC stands for Earned Income Tax Credit, but it is frequently referred to as EIC as well. It refers to a tax credit for working people who earned low to moderate income last year. The amount of tax credit depends on your filing status and how much you earned in the last year.
If you file a tax return and you qualify for an EIC or EITC, you could pay less federal tax or even get a tax refund. Here are some general requirements:
- You and any qualifying child must have a valid Social Security number (Individual Taxpayer Identification Numbers, or ITINs, do not qualify)
- Your filing status cannot be married filing separately (MFS)
- You cannot have investment income greater than $3,350 for 2014
- You must be a U.S. citizen or resident alien for the entire year
- You must have earned incomefrom employment or self-employment
The great thing about TurboTax is that we will calculate the tax credit for you based on your entries so that you can file the necessary EIC forms and there’s no additional charge to file these forms. If you need more help determining if you are eligible for the EITC, check out our blog post on Earned Income Tax Credit.
Haven’t’ filed your taxes yet? Get started today with TurboTax here.