Table of Contents
- Introduction
Introduction- Begin Here
- Introduction. Can I Claim the EIC?
- Introduction. Do I Need This Publication?
- Introduction. How Do I Figure the Amount of EIC?
- Introduction. How Can I Quickly Locate Specific Information?
- Introduction. Is There Help Online?
- Introduction. How Can I Get EIC in My Paycheck in 2008?
- Introduction. What's New
- Introduction. Reminders
The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $39,783. A tax credit usually means more money in your pocket. It reduces the amount of tax you owe. The EIC may also give you a refund.
To claim the EIC, you must meet certain rules. These rules are summarized in Table 1.
Table 1. Earned Income Credit in a Nutshell
First, you must meet all the rules in this column. | Second, you must meet all the rules in one of these columns, whichever applies. | Third, you must meet the rule in this column. | |||
Chapter 1.
Rules for Everyone |
Chapter 2.
Rules If You Have a Qualifying Child |
Chapter 3.
Rules If You Do Not Have a Qualifying Child |
Chapter 4.
Figuring and Claiming the EIC |
||
1. Your
adjusted gross income (AGI) must be less than: • $37,783 ($39,783 for married filing jointly) if you have more than one qualifying child, • $33,241 ($35,241 for married filing jointly) if you have one qualifying child, or • $12,590 ($14,590 for married filing jointly) if you do not have a qualifying child. (See page 5.) |
2. You must have a valid social security number.
(See page 5.) 3. Your filing status cannot be “Married filing separately.” (See page 6.) 4. You must be a U.S. citizen or resident alien all year. (See page 6.) 5. You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). (See page 7.) 6. Your investment income must be $2,900 or less. (See page 7.) 7. You must have earned income. (See page 9.) |
8. Your child must meet the relationship, age, and residency tests.
(See page 12.) 9. Your qualifying child cannot be used by more than one person to claim the EIC. (See page 15.) 10. You cannot be a qualifying child of another person. (See page 19.) |
11. You must be at least age 25 but under age 65.
(See page 20.) 12. You cannot be the dependent of another person. (See page 20.) 13. You cannot be a qualifying child of another person. (See page 21.) 14. You must have lived in the United States more than half of the year. (See page 21.) |
15. Your earned income must be less than:
• $37,783 ($39,783 for married filing jointly) if you have more than one qualifying child, • $33,241 ($35,241 for married filing jointly) if you have one qualifying child, or • $12,590 ($14,590 for married filing jointly) if you do not have a qualifying child. (See page 22.) |
Certain people who file Form 1040 must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 instructions, when they are checking whether they can take the EIC. You are one of those people if any of the following statements are true for 2007.
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You are filing Schedule E (Form 1040).
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You are reporting income or a loss from the rental of personal property not used in a trade or business.
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You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends).
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You are reporting an amount on Form 1040, line 13, that includes an amount from Form 4797.
If none of the statements above apply to you, your tax form instructions have all the information you need to find out if you can claim the EIC and to figure the amount of your EIC. You do not need this publication. But you can read it to find out whether you can take the EIC and to learn more about the EIC.
If you can claim the EIC, you can either have the IRS figure the amount of your credit, or you can figure it yourself. To figure it yourself, you can complete a worksheet in the instructions for the form you file. To find out how to have the IRS figure it for you, see chapter 4.
You can use the index to look up specific information. In most cases, index entries will point you to headings, tables, or a worksheet.
Yes. You can use the EITC Assistant at www.irs.gov/eitc to find out if you may be eligible for the credit. The EITC Assistant is available in English and Spanish.
You may prefer to get some of next year's EIC throughout the year, rather than wait and get EIC after you file your tax return. Chapter 6 explains advance payment of EIC and tells how, if you have a qualifying child, you may be able to get some of the EIC in your paycheck in 2008.
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You have more than one qualifying child and you earned less than $37,783 ($39,783 if married filing jointly),
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You have one qualifying child and you earned less than $33,241 ($35,241 if married filing jointly), or
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You do not have a qualifying child and you earned less than $12,590 ($14,590 if married filing jointly).
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Medicaid and supplemental security income (SSI).
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Food stamps.
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Low-income housing.
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
National Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
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