Table of Contents
- Introduction
Introduction– Begin Here
- Introduction. Can I Claim the EIC?
- Introduction. Do I Need This Publication?
- Introduction. Do I Have To Have a Child To Qualify For The EIC?
- Introduction. How Do I Figure the Amount of EIC?
- Introduction. How Can I Quickly Locate Specific Information?
- Introduction. Is There Help Online?
- Introduction. What's New for 2010
- Introduction. Reminders
The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $48,362. A tax credit usually means more money in your pocket. It reduces the amount of tax you owe. The EIC may also give you a refund.
To claim the EIC, you must meet certain rules. These rules are summarized in Table 1.
Table 1. Earned Income Credit in a Nutshell
| First, you must meet all the rules in this column. | Second, you must meet all the rules in one of these columns, whichever applies. | Third, you must meet the rule in this column. | |||
| Chapter 1. Rules for Everyone |
Chapter 2. Rules If You Have a Qualifying Child |
Chapter 3. Rules If You Do Not Have a Qualifying Child |
Chapter 4. Figuring and Claiming the EIC |
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| 1. Your adjusted gross income (AGI) must be less than: • $43,352 ($48,362 for married filing jointly) if you have three or more qualifying children, • $40,363 ($45,373 for married filing jointly) if you have two qualifying children, • $35,535($40,545 for married filing jointly) if you have one qualifying child, or • $13,460 ($18,470 for married filing jointly) if you do not have a qualifying child. (See page 5.) |
2. You must have a valid social security number. (See page 5.) 3. Your filing status cannot be “Married filing separately.” (See page 6.) 4. You must be a U.S. citizen or resident alien all year. (See page 6.) 5. You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). (See page 7.) 6. Your investment income must be $3,100 or less. (See page 7.) 7. You must have earned income. (See page 9.) |
8. Your child must meet the relationship, age, residency, and joint return tests. (See page 12.) 9. Your qualifying child cannot be used by more than one person to claim the EIC. (See page 16.) 10. You cannot be a qualifying child of another person. (See page 20.) |
11. You must be at least age 25 but under age 65. (See page 21.) 12. You cannot be the dependent of another person. (See page 21.) 13. You cannot be a qualifying child of another person. (See page 22.) 14. You must have lived in the United States more than half of the year. (See page 23.) |
15. Your earned income must be less than: • $43,352 ($48,362 for married filing jointly) if you have three or more qualifying children, • $40,363 ($45,373 for married filing jointly) if you have two qualifying children, • $35,535 ($40,545 for married filing jointly) if you have one qualifying child, or • $13,460 ($18,470 for married filing jointly) if you do not have a qualifying child. (See page 24.) |
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Certain people who file Form 1040 must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 instructions, when they are checking whether they can take the EIC. You are one of those people if any of the following statements are true for 2010.
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You are filing Schedule E (Form 1040).
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You are reporting income from the rental of personal property not used in a trade or business.
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You are a member of a qualified joint venture that is a passive activity with rental real estate income not subject to self-employment tax.
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You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends).
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You are reporting an amount on Form 1040, line 13, that includes an amount from Form 4797.
If none of the statements above apply to you, your tax form instructions have all the information you need to find out if you can claim the EIC and to figure the amount of your EIC. You do not need this publication. But you can read it to find out whether you can take the EIC and to learn more about the EIC.
No, you can qualify for the EIC without a qualifying child if you are at least age 25 but under age 65 and your earned income is less than $13,460 ($18,470 if married filing jointly). See chapter 3.
If you can claim the EIC, you can either have the IRS figure the amount of your credit, or you can figure it yourself. To figure it yourself, you can complete a worksheet in the instructions for the form you file. To find out how to have the IRS figure it for you, see chapter 4.
You can use the index to look up specific information. In most cases, index entries will point you to headings, tables, or a worksheet.
Yes. You can use the EITC Assistant at www.irs.gov/eitc to find out if you may be eligible for the credit. The EITC Assistant is available in English and Spanish.
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You have three or more qualifying children and you earned less than $43,352 ($48,362 if married filing jointly),
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You have two qualifying children and you earned less than $40,363 ($45,373 if married filing jointly),
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You have one qualifying child and you earned less than $35,535 ($40,545 if married filing jointly), or
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You do not have a qualifying child and you earned less than $13,460 ($18,470 if married filing jointly).
After 2010, you can no longer get advance payments of the credit in your pay during the year as you could in 2010 and earlier years. This is because the law has changed. However, if you are eligible, you will still be able to claim the credit on your return, as explained in this publication.
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Medicaid and supplemental security income (SSI).
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Supplemental Nutrition Assistance Program (food stamps).
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Low-income housing.
Internal Revenue Service
Individual Forms and Publications Branch
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Internal Revenue Service
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