A general thumb rule for EIC is the lesser you earn, more is your credit.
And if you have children in your family, you are definitely eligible for larger credits.
EIC or EITC, the earned income tax credit, is a refundable tax credit provided to workers with little or modest incomes. The earned income credit for the 2021 tax year will be $1,502 to $6,728 depending on tax-filing status, income, and the number of children. People who do not have children can qualify.
If your income qualifies, you may be eligible for the credit. When you do your taxes, be sure to claim it. The IRS encourages you to notify the IRS if you believe that you qualified for the earned income credit but didn’t claim it on your return in previous three years and would have been eligible.
Now who all qualifies for the same, you can check out the EIC table 2021. But to nutshell,
- To be eligible for this deduction, you must have at least $1 of earned income (pensions and unemployment benefits do not qualify).
- Your investment income must be less than $10,000.
- If you’re divorced but still married, you may qualify for the EITC 2021. To qualify for this tax benefit, you and your child must file a joint tax return and your kid must spend more than half of the year with you. You must have been separated from your spouse for at least six months and not lived with him or her during the previous six months in order to qualify.
