Serving Monroe, Owen, and Greene Counties

Earned Income Tax Credit (EITC)

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KEEP MORE OF WHAT YOU EARNED!

Did you work in 2018? You may be eligible for up to $6,431 in Earned Income Tax Credit (EITC) – even if you don’t owe taxes.

The Earned Income Tax Credit (EITC) can result in a significant income boost - up to $6,431 for those who qualify! The EITC is a refundable federal income tax credit for low- and moderate-income working individuals and families. A tax credit is a dollar-for-dollar reduction of taxes owed. Since it is a refundable credit, when the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing, or most Temporary Assistance for Needy Families (TANF) payments.

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be required to file a tax return.

Are You Eligible?

To be eligible for the Earned Income Tax Credit (EITC) you must:

  • Have earned income from employment, self-employment or another source.
  • Have a valid Social Security Number.
  • Be a U.S. citizen or resident alien for the past year. If you’re a nonresident alien, you must be married to a U.S. citizen or legal resident and filing a joint tax return.
  • Have no more than $3,500 in investment income.
  • File a joint tax return if married.
  • Live in the U.S. for more than half of the year.
  • Be 25-64 years of age, if you aren’t claiming any qualifying children (if you are claiming qualifying children, you can be any age).

In addition, your 2018 income (Adjusted Gross Income) cannot exceed:

If you are MARRIED filing jointly

  • $20,950 with no qualifying children 
  • $46,010 with one qualifying child 
  • $51,492 with two qualifying children 
  • $54,884 with three or more qualifying children 
If you are SINGLE 
  • $15,270 with no qualifying children 
  • $40,320 with one qualifying child 
  • $45,802 with two qualifying children 
  • $49,194 with three or more qualifying children

Also, to claim the EITC you cannot:

  • Be the qualifying child of another person.
  • Be the dependent of another person.
  • File Form 2555 or 2555-EZ (related to foreign earned income).

If you are claiming qualifying children, each child must:

  • Have a valid Social Security Number,
  • Be the taxpayer’s son, daughter, adopted child, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these (e.g. grandchild, niece, or nephew).
  • Be under age 19 at the end of the year; under age 24 at the end of the year and a full-time student; or be any age if permanently and totally disabled.
  • Must live with you in the United States for more than half of the year.

How much of an EITC can you get?

For tax year 2018, the maximum EITC tax credits are:

  • $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

Where can I get more Information?

  • Born Learning
  • Financial Stability Alliance
  • Monroe Smart Start
  • Familywize Discount Prescription Card
  • Bank On Bloomington