The amount of the tax credit is based on several factors, including the amount of an individual’s earnings from wages, self-employment or farming. The EITC can provide a refund for as much as $6,269 (for tax year 2016).
In order to claim the EITC, however, you have to file a tax return even if you don’t owe taxes for the previous year.
To qualify for EITC, you must have earned income from employment, self-employment or another source that does not exceed income limits (see below), as well as meet a few additional criteria.
Disability and EITC
Many individuals with disabilities and persons whose child* has a disability qualify for the EITC.
You may claim a child of any age as a qualifying child if the person has a permanent disability and you both meet all other EITC requirements. The tax law definition of totally and permanently disabled is:
- The person cannot engage in any substantial gainful activity because of a physical or mental condition.
- A doctor determines the condition has lasted or the doctor expects it to last continuously for at least a year or lead to death.
*Child: son, daughter, adopted child, stepchild, foster child or a descendant of any of them such as a grandchild; brother, sister, half brother, half sister, step brother, step sister or a descendant of any of them such as a niece or nephew.
Income Limits for 2016
- $47,955 ($53,505 married filing jointly) with three or more qualifying children
- $44,648 ($50,198 married filing jointly) with two qualifying children
- $39,296 ($44,846 married filing jointly) with one qualifying child
- $14,880 ($20,430 married filing jointly) with no qualifying children
Investment income must be $3,400 or less for the year.
Maximum Credit for 2016
- $6,269 with three or more qualifying children
- $5,572 with two qualifying children
- $3,373 with one qualifying child
- $506 with no qualifying children
Remember: To claim EITC, you must file a tax return even if you owe no tax.
Find out if you qualify for EITC. Ask your tax return preparer or visit the EITC website.