Do I qualify for the Earned Income Credit?

Modified on Wed, 24 Jan 2024 at 03:25 PM

What is the Earned Income Credit?

The Earned Income Tax Credit (EITC) is meant to help low to moderate income households lower their taxes and possibly increase their refund. Earned income includes taxable income from your W-2, your 1099 as an independent contractor or gig worker, self-employment or any business you own.

 

How can I claim the Earned Income Credit?

To qualify for this credit, you need:

Below is the EITC table for the tax year 2023

Children or Relatives Claimed

Filing as Single, Head of Household, or Widowed

Filing as Married Filing Jointly

Zero

$17,640

$24,210

One

$46,560

$53,120

Two

$52,918

$59,478

Three or more

$56,838

$63,698

There is an investment income limit of $11,000 or less.

Children or relatives claimed

Maximum credit amount for 2023

Zero

$600

One

$3,995

Two

$6,604

Three or more

$7,430

What does not qualify as earned income for this credit?

  • Pay you got for work when you were an inmate in a penal institution

  • Interest and dividends

  • Pensions or annuities

  • Social Security

  • Unemployment benefits

  • Alimony

  • Child support

Note: Claiming this credit may cause your refund to be delayed. By law, the IRS must wait until mid-February to issue refunds to taxpayers who claim the Earned Income Tax Credit. 

 

This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.

 

Any third-party links are provided for informational purposes only. The third parties and their sites are not endorsed by Beem and Beem is not responsible for, and has no control over, their content, privacy policies, or terms of service.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article