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Visit the Income Limits and Range of EITC page to see, at a glance, the EITC income limits and credit amounts. Workers without a qualifying child could be eligible for a smaller credit up to $538. The EITC can mean up to a $6,660 credit, depending on your income, filing status, and number of qualifying children. If you worked in 2020 and had income of less than $56,844, or if you worked during 2019 and made a similar amount, you may want to check your eligibility for the EITC with your 2019 income and again with your 2020 income to determine which amount produces a larger credit. Military and clergy should review the IRS’s Special EITC Rules because taking this credit may affect other government benefits. Therefore, having the opportunity to elect to use your income information from 2019, instead of 2020, when calculating eligibility might be beneficial for some taxpayers. Unemployment benefits do not count as earned income. This includes taxpayers who have their own business or farm. This means you must have income from working for someone or working for yourself. To be eligible, you must have earned income or certain disability income. The EITC is complex and it varies by income, family size, and filing status. The EITC is a refundable tax credit which means workers may get money back, even if they owe no tax or the amount of the credit exceeds the amount of any tax owed.
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For more information about this new choice on your tax return, see the instructions for Form 1040 for line 27, or our NTA blog.īelow is some information and tools to help you see if you might qualify for the EITC. You may elect to use your 2019 earned income to figure your 2020 Earned Income Tax Credit (EITC) if your 2019 earned income is more than your 2020 earned income. New for taxpayers this year is a provision under the Taxpayer Certainty and Disaster Tax Relief Act of 2020.