You work? Now put EITC to work for you.

The Earned Income Tax Credit (or EITC) is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. EITC reduces the amount of tax you owe and may give you a refund.

Workers at risk for overlooking this important credit include those:

  • Living in non-traditional homes, such as a grandparent raising a grandchild
  • Whose earnings declined or whose marital or parental status changed
  • Without children
  • With limited English skills
  • Living in rural areas 
  • Who are Native Americans
  • With earnings below the filing requirement
  • Who have disabilities or are raising children with disabilities

If you qualify for the Federal EITC, you may also be eligible for a similar credit from your state or local government. Twenty-five states, plus local municipalities including the District of Columbia and New York City, offer residents an earned income tax credit for 2015.
 

Toolkit graphic

Credit Unions and Your Tax Return

Did you know that many credit unions offer their members resources for tax return preparation or participate in Volunteer Income Tax Assistance (VITA), an Internal Revenue Service (IRS)-sponsored program that provides free tax filing assistance?

The VITA program offers free tax help to individuals with low-to-moderate income, persons with disabilities, elderly and Limited English Proficiency. VITA also offers access to free tax preparation software for those who are able to prepare their own tax returns. Contact your local credit union to learn more.
 

  1. Do I qualify for EITC?

    To qualify for EITC you must have earned income from employment, self-employment, or another source and meet certain rules. You must either meet the rules for workers without a qualifying child or have a child that meets all the qualifying child rules for you.

    Many families who receive this credit use it to pay living expenses and to save for future needs. Individuals do not need to have children to claim EITC. Generally, income and family size determine a taxpayer's eligibility and the EITC amount a taxpayer can receive.

    By answering questions and providing basic income information, you can use the IRS’s EITC Assistant to:

    • find out if you are eligible for EITC;
    • determine if your child or children meet the tests for a qualifying child; and
    • estimate the amount of your credit.

    Learn more from the IRS about EITC qualifications. 

  2. How Do I Claim EITC?

    You need to file a tax return to claim EITC. Find out:

    • the documents you need
    • the common errors to watch for
    • the consequences of filing an EITC return with an error
    • how to get help preparing your return
    • what you need to do if your EITC was denied in a previous year
    • how to claim the credit for earlier tax years

  3. I Received a Letter from the IRS about EITC, What Should I Do?

    You may receive a letter or notice from the IRS about EITC. The IRS sends letters to let you know that, based on the information they have:

    • You may qualify for EITC, so file and claim it;
    • The IRS needs to verify you can claim EITC;
    • The IRS is proposing changes to your EITC;
    • The IRS previously disallowed or reduced your EITC and you must file Form 8862 to claim EITC; or
    • The IRS provided more information. For example, what your next steps are or the IRS received your information and they are processing it.

    Learn more.

  4. Tax-Related Identity Theft

    Tax-related identity theft occurs when someone uses your stolen Social Security number (SSN) to get a tax refund or a job. For important tips on preventing tax identity theft, visit our Tax Identity Theft Awareness Week page.

  5. Disability and EITC

    Many taxpayers with disabilities are eligible to receive the EITC refund, but the credit often goes unclaimed. Some disability retirement benefits qualify as earned income to claim the EITC. Also, you may claim a relative of any age as a qualifying child if the relative is totally and permanently disabled and fits all other EITC requirements. The IRS and The National Disability Institute offer resources to learn more about disability and EITC.

  6. Earned Income Tax Credit Awareness Day

    Each year, IRS joins partners nationwide to launch the EITC Awareness Day outreach campaign to ensure that millions of low-and moderate-income workers get the credit they deserve and get it right. The IRS invites community organizations, elected officials, state and local governments, schools, employers, and other interested parties to join a national grassroots effort on EITC Awareness Day to spotlight EITC.

    Learn more.

  7. IRS EITC Resources

    IRS EITC Resources
    Guide to Everything Earned Income Tax Credit for Individuals Online (IRS)

Related Resources