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 2020? You may be eligible for up to $6,660 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 $6,660 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 $3,600 in investment income.
  • File a joint tax return if married.
  • Live in the U.S. for more than half of the year, if you aren't claiming any qualifying children.
  • 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 2020 income (Adjusted Gross Income) cannot exceed:

If you are MARRIED filing jointly

  • $21,710 with no qualifying children 
  • $47,646 with one qualifying child 
  • $53,330 with two qualifying children 
  • $56,844 with three or more qualifying children 
If you are SINGLE 
  • $15,820 with no qualifying children 
  • $41,756 with one qualifying child 
  • $47,440 with two qualifying children 
  • $50,954 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 younger than you and under age 19 at the end of the year; or younger than you and 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 2020, the maximum EITC tax credits are:

  • $6,660 with three or more qualifying children 
  • $5,920 with two qualifying children 
  • $3,584 with one qualifying child 
  • $538 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