Earned Income Tax Credit

If eligible, all individual taxpayers and families should claim tax credits. Tax credits can not only reduce the amount of taxes owed, but some can result in a tax refund. The earned income tax credit (EITC)is such a credit. It benefits millions of taxpayers by putting more money in their pockets.

If you are a taxpayer that has claimed the credit in the past, be sure to help your friends, family members and neighbors find out about the EITC. They can go to IRS.gov/eitc or use the EITC Assistant tool on IRS.gov. Word of mouth is a great way to help people who may be eligible for this credit in 2019 for the first time. People often become eligible for the credit when their family or financial situation changed in the last year.

Based on income, family size and filing status, the maximum amount of EITC for Tax Year 2018 is:

  • $6,431 with three or more qualifying children
  • $5,716 with two qualifying children
  • $3,461 with one qualifying child
  • $519 with no qualifying children

Every year, millions of taxpayers don’t claim the EITC because they don’t know they’re eligible. Here are some groups the IRS finds often overlook this valuable credit:

  • American Tribal communities
  • People living in rural areas
  • Working grandparents raising grandchildren
  • Taxpayers with disabilities
  • Parents of children with disabilities
  • Active duty military and/or veterans
  • Healthcare and Hospitality workers

Free tax help from volunteers:

The IRS works with community organizations around the country to offer free tax preparation services. They train volunteers who prepare taxes for people with low and moderate income. These volunteers can help determine if a taxpayer is eligible to claim the EITC. There are two IRS-sponsored programs:

  • Volunteer Income Tax Assistance: This program, also known as VITA, offers free tax return preparation to eligible taxpayers who generally earn $55,000 or less.
  • Tax Counseling for the Elderly: TCE is mainly for people age 60 or older but offers service to all taxpayers. The program focuses on tax issues unique to seniors. AARP participates in the TCE program through AARP Tax-Aide.

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Any tax advice herein is based on the facts provided to us and on our interpretation of tax legislation as it reads at the time the advice is provided. Tax law is subject to continual change, at times on a retroactive basis and may result in incremental taxes, interest or penalties. We are not responsible for updating our advice for changes in law or interpretation after the date the advice is provided. Every tax situation is different. We are not responsible for the tax implications to any individual or entity that may act on this advice.