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Earned Income Tax Credit (EITC)

Thursday, January 28, 2016   (0 Comments)
Posted by: Amy Spencer
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EITC, the Earned Income Tax Credit is a benefit for working people with low to moderate income. EITC can reduce the federal tax to zero and any unused credit is refunded. But, workers must file a tax return to get the credit even if their income is below the filing requirement. To qualify, workers must have taxable income from working for someone or from running a business or farm. 

EITC is one of the Largest Antipoverty Programs

  • For tax year 2014, 27.5 million received about $66.7 billion in EITC
  • The average amount of EITC paid out in 2014 was more than $2,400
  • Four of five people eligible for the EITC claim it
  • EITC and the CTC, Child Tax Credit, greatly reduce poverty for working families. These working family credits lifted an estimated 9.4 million people out of poverty, including 5 million or more than half of them children
  • The cost of administereing the EITC program ratio to claims paid is less than one percent.


Tax Year 2015 Income Limits and Range Range of EITC

Number of
For Single/Head of Household
or Qualifying Widow(er),
Income Must be Less Than
For Married Filing 
Jointly, Income Must 
be Less Than
Range of EITC
 No Child $14,820 $20,330 $2 to $503
One Child $39,131 $44,651 $9 to $3,359
Two Children $44,454 $49,974 $10 to $5,548
Three of More  
$47,747 $53,267 $11 to $6,242

Who Are We Missing?

We estimate that four out of five workers claim the EITC they earned. Help IRS reach the potentially qualified workers who miss out on thousands of dollars every year on EITC. Help us educate them about the credit and motivate them to join the four out of five who file and claim it. This includes workers who are:

  • living in rural areas
  • self-employed
  • receiving certain disability pensions or have children with disabilities
  • without a qualifying child
  • not proficient in English
  • grandparents raising their grandchildren, or
  • recently divorced, unemployed, or experienced other changes to their marital, financial or parental status

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