Earned Income Tax Credit (EITC)
Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.
To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.
2013 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
· $46,227 ($51,567 married filing jointly) with three or more qualifying children
· $43,038 ($48,378 married filing jointly) with two qualifying children
· $37,870 ($43,210 married filing jointly) with one qualifying child
· $14,340 ($19,680 married filing jointly) with no qualifying children
Tax Year 2012 maximum credit:
· $6,044 with three or more qualifying children
· $5,372 with two qualifying children
· $3,250 with one qualifying child
· $487 with no qualifying children
Investment income must be $3,300 or less for the year.
The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.
The Riverside County EITC program provides year-round free tax preparation assistance through VITA (Volunteer Income Tax Assistance Program) to residents and encourages asset-development to help families move out of poverty. The only requirements are a willingness to learn something new and a desire to help others. For more information, contact program manager Kgongora@capriverside.org on how you can gain FREE training and certification to prepare taxes for working individuals making less than $52,000.
VITA sites operate year round. Call our office to make an appointment for year-round tax preparation, 951-955-4900.
- FAQ (Internal Revenue Service site Q&A)
- Success Story
- Contact Us (EITC)
- Join Volunteer Income Tax Assistance Program (VITA)