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.
2014 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
· $46,997 ($52,427 married filing jointly) with three or more qualifying children
· $43,756 ($49,186 married filing jointly) with two qualifying children
· $38,511 ($43,941 married filing jointly) with one qualifying child
· $14,590 ($20,020 married filing jointly) with no qualifying children
Tax Year 2014 maximum credit:
· $6,143 with three or more qualifying children
· $5,460 with two qualifying children
· $3,305 with one qualifying child
· $496 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 Lynette Worrell LWorrell@capriverside.org on how you can gain FREE training and certification to prepare taxes for working individuals making less than $52,427.
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)
- Free Tax Prep Locations 2015
- What to Bring to Appointment
- Success Story
- Contact Us (EITC)
- Join Volunteer Income Tax Assistance Program (VITA)