Earned income tax credit
The earned income tax credit, or EITC, is designed to help lower-income people who have jobs keep more of their income. Whether or not you qualify for the credit depends on your income and whether you file single or jointly, or if you have children. Qualifying income ranges between $14,590 and $52,427 for 2014, depending on filing status and qualifying children. Other eligibility requirements are:
- You must have a Social Security number
- You must be a U.S. citizen or resident alien
- You cannot file as married filing separately
- You must have income from working for someone, from self-employment or owning a business, and
- Your earned income and investment income must be less than the required limits
For 2014, the EITC ranges from $496 if you have no qualifying children, up to $6,143 if you have three or more qualifying children.