Video transcript:
Wondering if you should file for the earned income tax credit? Let's figure it out on this edition of Tax Tips by TurboTax.
To determine if you qualify for the Earned Income Tax Credit, or EITC, ask yourself the following questions.
One: Does your income meet the IRS threshold for your filing status? In order to qualify, your adjusted gross income and your earned income must be more than zero, but less than the limits set by the IRS. The thresholds vary depending on your filing status and how many children you have.
Two: Do you have investment income to report on your tax return? Investment income is any income received from things like stock dividends, bank interest, and more.
Three: Are you filing without a qualifying child? If you are not filing with a child, you must be at least 25 and less than 65 years old to qualify.
Four: Do you have children to claim as dependents? It can be easier to qualify for the Earned Income Credit if you can claim a child as a dependent as your income thresholds increase for each child you claim. If you are claiming children and the Earned Income Credit, you’ll need to fill out a Schedule EIC.
You won’t need to calculate your earned income credit on the schedule. Just provide basic information about the children, like their relationship to you, birthdays, and other details you probably already know.
TurboTax can help you claim the Earned Income Tax Credit. We’ll ask you simple questions, and fill out the right forms for you. Visit Turbotax.com for more info to help you file your taxes with confidence.
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