The earned income tax credit benefits working people with low-to-moderate income. Last year, the average credit was $2,445. EITC not only reduces the amount of tax someone owes, but may also give them a refund, even if they don’t owe any tax at all.
Here are a few things people should know about this credit:
Here’s a quick look at the income limits for the different filing statuses. Those who work and earn less than these amounts may qualify.
Married filing jointly:
Head of household and single:
The maximum credit amounts are based on the number of children a taxpayer has. They are the same for all filing statuses:
Taxpayers who file using the status married filing separately cannot claim EITC.
Publication 5334, Do I Qualify for EITC?
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