Benefits

Learn how to apply for Earned Income Tax Credit (EITC)

The Earned Income Tax Credit can provide a significant tax break if you're eligible. Read on and discover the eligibility requirement and how to apply.

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Earned Income Tax Credit: learn how to apply and save money

EITC Earned income tax credit calculations on the page.
Learn how to apply for Earned Income Tax Credit (EITC). Source: Adobe Stock

Are you wondering how to apply for the Earned Income Tax Credit? Wonder no longer. This post will explain how the application process for this program works.

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Benefit

Earned Income Tax Credit

Benefits Tax Refund

Tax refund and extra money!

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EITC is a welfare program that will help individuals and their families get a tax break. Read on to learn how.

Requirements 

When it comes to personal finances, many of us need all the help we can get.

One financial relief option that often flies under the radar is the Earned Income Tax Credit (EITC).

This credit has been in place for nearly 50 years and helps to reduce taxes owed by providing additional money back during tax season – up to $6,000 in some cases!

It’s worth taking a few minutes before you file your taxes this year to learn how you could benefit from EITC. For that, let’s check out what is needed to apply.

There are three fundamental requirements to be eligible for EITC:

  • First, you have to work and earn an income. It can come from wages, salary, tips, self-employment, military pay, and others listed;
  • Secondly, there is an income limit you must qualify for. Also, it’s updated every year;
  • Third, you must have a Social Security number for you and all the applicants claimed on your tax return.

Furthermore, there are more details to pay attention to.

For example, some requirements for children claimed in your application include kinship, age, or the time the child lives with the applicant.

Additionally, you can discover if you are eligible for EITC through the Internal Revenue Service(IRC) website. Access the EITC area and find the “Use the EITC Assistant” page.

Once accessing the EITC assistant, simply answer the questions, and you’ll get a result from the tool indicating if you’re eligible.

Documents needed to apply

Interest rate and dividend concept, Businessman is calculating income and return on investment in percentage. income, return, retirement, compensation fund, investment, dividend tax, stock market
Documents needed to apply for EITC. Source: Adobe Stock

If you’ve verified your eligibility through the tool, it’s easy to deduce that some of the information given will need documentary proof.

But if you don’t, we’ll show you next what documents you need.

You’ll be required to show all your incomes, expenses, deductions, documents of qualifying dependents, and birth dates of everyone listed on the return.

Documents include valid photo identification, social security cards, forms W-s – as well as other statements of income – copies of last year’s date returns.

You can check the complete list of required documents on EITC through the Internal Revenue Service website.

Applying for Earned Income Tax Credit (EITC)

You claim your EITC by a tax return, even if you are not obliged to make the declaration or do not have to pay any tax.

As a result, you must file your state return, listing the information and documents found on the IRS’s website and using one of its online tools.

Make sure you have all the required documents, including your photo ID and your spouse, in case you’re married.

Then simply e-file your return using one of the IRS Free Files or another available listed form.

Discover other programs that can help you: Supplemental Security Income (SSI)

Finances can be tricky, so it pays to know all your options. With the Earned Income Tax Credit (EITC), you can get some much-needed tax relief if you are eligible.

But know that other programs are also out there if you’re passing by hard times!

For instance, the Supplemental Security Income (SSI) program is a great way to receive financial assistance.

Take a minute to discover how it works, who’s eligible, and how to apply!

Supplemental Security Income (SSI) written on a paper.

Learn how to apply for Supplemental Security Incom

Learn how to apply for Supplemental Security Income, an assistance program that helps seniors and people with disabilities and low income.

About the author  /  Luis Felipe Regueira

I needed to learn about finances when I was in culinary school and wanted to save money to start my own business. So I haven't stopped because I believe studying and writing about the topic can help more people achieve their goals. Currently, I write about finances and run a small coffee shop.

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