Earned Income Credit (Tax Course)
Questions And Answers With Verified
Solutions 100% Correct Rated A+
Earned Income Credit (EIC): EIC and Rules - ANSWER✔✔ Earned Income
Credit (EIC) is a refundable tax credit for qualified (low-income) taxpayers who
have earned income. Earned income includes: wages, self-employment income,
and eligible disability pay. There are seven rules that must be met in order to
qualify for EIC.
Taxpayer's Adjusted Gross Income (AGI) is less than specified amounts.
Taxpayer must have a valid Social Security Number.
Taxpayer's filing status cannot be Married Filing Separately (MFS).
Taxpayer must be a U.S. Citizen or Resident Alien all year.
Taxpayer cannot file Form 2555 or Form 2555-EZ.
Taxpayer's investment income must be $3,400 or less.
Taxpayer must have earned income.
New for 2016 - ANSWER✔✔ Valid SSN required by due date of return
If you didn't have a social security number (SSN) by the due date of your 2015
return (including extensions), you can't claim the EIC on either your original or an
amended 2015 return, even if you later get an SSN.
If a child didn't have an SSN by the due date of your return (including extensions),
you can't count that child as a qualifying child in figuring the EIC on either your
original or an amended 2015 return, even if that child later gets an SSN.
, The Protecting Americans from Tax Hikes or PATH Act made several changes to
the tax law, including preventing claiming the EITC for any year you or anyone
listed on your tax return did not have a SSN valid for employment issued before
the due date of that year's tax return (including filed extensions).
Taxpayers with Qualifying Child - ANSWER✔✔ The rules for qualifying children
for the purpose of claiming the earned income credit are slightly different than the
rules for dependents. It may be possible that a child qualifies as a dependent, but
not for EIC; or might qualify the taxpayer for EIC even though the non-custodial
parent claims the dependent. Here are the qualifying children tests for the earned
income credit:
Relationship test
Age test
Residency test
Joint return test
Tests for Qualifying Child - ANSWER✔✔ Relationship test - The child must be
the taxpayer's son, daughter, stepchild, foster child, or a descendant of any of them,
or be the taxpayer's brother, sister, half-brother, half-sister, stepbrother, stepsister,
or a descendant of any of them.
Age test - The child must be either:
Younger than the taxpayer or spouse, and either:
Under age 19 at the end of 2015, or
Under age 24 and a full-time student at the end of 2015, or
Any age, and permanently and totally disabled at any time during 2015
Joint return test - The child cannot file a joint return for the year unless the joint
return is filed only to claim a refund.
Questions And Answers With Verified
Solutions 100% Correct Rated A+
Earned Income Credit (EIC): EIC and Rules - ANSWER✔✔ Earned Income
Credit (EIC) is a refundable tax credit for qualified (low-income) taxpayers who
have earned income. Earned income includes: wages, self-employment income,
and eligible disability pay. There are seven rules that must be met in order to
qualify for EIC.
Taxpayer's Adjusted Gross Income (AGI) is less than specified amounts.
Taxpayer must have a valid Social Security Number.
Taxpayer's filing status cannot be Married Filing Separately (MFS).
Taxpayer must be a U.S. Citizen or Resident Alien all year.
Taxpayer cannot file Form 2555 or Form 2555-EZ.
Taxpayer's investment income must be $3,400 or less.
Taxpayer must have earned income.
New for 2016 - ANSWER✔✔ Valid SSN required by due date of return
If you didn't have a social security number (SSN) by the due date of your 2015
return (including extensions), you can't claim the EIC on either your original or an
amended 2015 return, even if you later get an SSN.
If a child didn't have an SSN by the due date of your return (including extensions),
you can't count that child as a qualifying child in figuring the EIC on either your
original or an amended 2015 return, even if that child later gets an SSN.
, The Protecting Americans from Tax Hikes or PATH Act made several changes to
the tax law, including preventing claiming the EITC for any year you or anyone
listed on your tax return did not have a SSN valid for employment issued before
the due date of that year's tax return (including filed extensions).
Taxpayers with Qualifying Child - ANSWER✔✔ The rules for qualifying children
for the purpose of claiming the earned income credit are slightly different than the
rules for dependents. It may be possible that a child qualifies as a dependent, but
not for EIC; or might qualify the taxpayer for EIC even though the non-custodial
parent claims the dependent. Here are the qualifying children tests for the earned
income credit:
Relationship test
Age test
Residency test
Joint return test
Tests for Qualifying Child - ANSWER✔✔ Relationship test - The child must be
the taxpayer's son, daughter, stepchild, foster child, or a descendant of any of them,
or be the taxpayer's brother, sister, half-brother, half-sister, stepbrother, stepsister,
or a descendant of any of them.
Age test - The child must be either:
Younger than the taxpayer or spouse, and either:
Under age 19 at the end of 2015, or
Under age 24 and a full-time student at the end of 2015, or
Any age, and permanently and totally disabled at any time during 2015
Joint return test - The child cannot file a joint return for the year unless the joint
return is filed only to claim a refund.
