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Who Qualifies for Earned Income Credit?

Information below answers the question of who qualifies for earned income credit. Earned income credit is refundable tax credit for low income taxpayers with or without children. By refundable tax credit, it means the qualified taxpayer gets the money from the IRS even if he or she never paid any taxes.

The IRS requirements for earned income tax credit are tough to meet. Below is a summary of who qualifies for earned income credit. The tests to see who qualifies for earned income credit are divided into three parts:

  1. Income test for the taxpayer claiming the EIC

  2. general tests for everyone

  3. tests for persons with a qualifying child or persons without a qualifying child
1) Income test for taxpayers claiming the earned income tax credit (EIC)

In 2007 each taxpayer below qualifies for earned income credit must meet the income test for EIC:

  • Adjusted gross income less than $37,783 ($39,783 for married filing jointly) if more than one qualifying child

  • Adjusted gross income less than $33,241 ($35,241 if married filing jointly) if only one qualifying child

  • Adjusted gross income less than $12,590 ($14,590 if married filing jointly) if without qualifying child.
2) General tests for everyone who wants to qualify for earned income credit (EIC)

If you meet the income test for EIC, then you must meet all of the following tests for EIC qualification. The taxpayer who qualifies for earned income credit must:

  • have a valid social security number

  • not be married and filing separately

  • must be a US citizen or resident alien all year

  • cannot file the tax form 2555 or 2555-EZ

  • not have investment income of more than $2,900. Having $2,900 qualifies for earned income credit but not more.

  • have earned income. Students are assumed to have earned income according to the IRS rules.

If you qualify for all of the rules for earned income tax credit above, then you may be qualified for earned income tax credit if you also meet either of the following rules.

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