The Earned Income Tax Credit is for lower income households.
Below is a table that shows the maximum income to qualify for the earned income tax credit for 2023
To qualify, you can’t have investment income over $11,000.
The maximum income you can have is based on the following:
- number of children claimed
- your tax filing status
The Earned Income Tax Credit is actually given based on a percentage of your earned income.
After a certain income amount, the amount of the credit becomes less and less until it reaches zero.
The graph below summarizes it.
Eligibility for the EITC
A taxpayer must fulfill the following requirements to claim the EITC:
- The taxpayer must file a federal income tax return.
- The taxpayer must have earned income.
- The taxpayer must meet certain residency requirements.
- The taxpayer’s children must meet relationship, residency, and age requirements
to be considered qualifying children for the credit. - Childless workers who claim the credit must be between ages 25 and 64. (This
age requirement does not apply to EITC claimants with qualifying children.) - The taxpayer’s investment income must be below a certain amount.
- The taxpayer must not be disallowed the credit due to prior fraud or reckless
disregard of the rules when they previously claimed the EITC. - The taxpayer must provide the Social Security number (SSN) for themselves,
their spouse, if married, and any children for whom the credit is claimed.
Moontree Tax Service can file taxes for you and explain taxes in more detail.
