Susan E. Thomas CPA
What is the earned income credit and who qualifies for it?

The earned income credit (EIC) is a refundable tax credit available to certain low-income individuals who have earned income, meet adjusted gross income thresholds, and do not have more than a specified amount of disqualified income (excess investment income). If you file a federal tax return and meet all applicable requirements, your income tax (if any) will be reduced and you might receive a refund.

To qualify for the EIC, you must meet all of the following requirements:

  • Must have earned income
  • Tax return must cover a full 12 months (unless a short period is filed due to taxpayer's death)
  • Filing status cannot be married filing separately
  • Cannot be a qualifying child of another taxpayer
  • Must not have filed forms related to foreign earned income
  • Must have no more than $3,600 of disqualified income (2019)
  • In addition, special rules will apply to taxpayers who have qualifying children and to taxpayers who do not have qualifying children.

    For more information, consult a tax professional.

    Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011