Hi! Congratulations on your new baby! The IRS describes the Earned Income Tax Credit (EIC or EITC) as “a financial boost for people working hard to make ends meet.” Here are some of the requirements from the IRS for claiming this credit:
· Must have earned income, such as payment from a job, tips or the income from running a business or farm. Most other types of income, such as retirement pensions and unemployment benefits, do not count as earned income.
· Must have a Social Security number that is valid for employment for self, spouse and any qualifying children.
· Must have zero or a small amount of investment income, such as interest from a bank account. The amount of investment income must be $3,350 or less.
· Must have a filing status of single, head of household, married filing jointly or qualifying widow or widower. A taxpayer who files as married filing separately cannot get the credit.
· Generally, must be either a U.S. citizen or resident alien.
· Cannot be a qualifying child of another person.
· Cannot file Form 2555 or Form 2555-EZ. These forms are used to claim the foreign earned income exclusion.
· Must have earned income of at least $1 and earned income and adjusted gross income must each be less than the amounts in the following chart.
If you are Single, Widowed or Head of Household and have one child, your AGI needs to be less than$38,511 to get the EIC. If you are Married Filing Jointly, it is$43,941.
You can read more about the EIC in IRS Publication 501. If you meet the requirements above, your new baby may function as the qualifying child for the EIC. If you have more questions, you can call the IRS; you would look up the phone number here – the number you’ll use is based on where you live. I have called my local office many times, and the representatives are very nice and helpful.
Hopefully this helps. If not, please write back. Best wishes to you and the new baby! Thanks for writing.
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