The Earned Income Tax Credit

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1 The Earned Income Tax Credit Claim the Tax Refunds You Deserve What is the Earned Income Tax Credit (EITC)? The EITC is a refundable tax-credit for working individuals who have earned income. If you are eligible, this credit reduces the tax you owe and may give you a cash refund. Can I claim the EITC? You can claim the EITC even if you did not have any income tax withheld. However, you must file a tax return. You need a valid Social Security Number, and must be a U.S. Citizen or Resident Alien all year. You may claim the EITC up to three years back. It is not too late to file tax returns for How much cash can I claim? The EITC refund depends on your income and family size. In 2015, individuals received up to $6,242. The average was over $2,400, and may help with rent, vehicle, food, children and medical costs. For more information, visit

2 You could be eligible for up to or more in your tax refund when you claim the and Visit a free site by April 15 to file your taxes and receive your money in a tax refund. * You could be eligible for up to or more in your tax refund when you claim the and Visit a free site by April 15 to file your taxes and receive your money in a tax refund. * This English Spanish envelope stuffer can be copied and mailed with paychecks, public assistance checks, bills, and other mailings. Local phone and utility companies, for example, might send copies with their December or early January bills to customers. For more ideas on using the envelope stuffers, see the Outreach Campaign Kit.

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4 DO I QUALIFY? The Earned Income Tax Credit and the Child Tax Credit are tax benefits for people who work. You could owe less in taxes and get cash back! Claiming these credits will not affect your eligibility for other benefits like SNAP (food stamps), SSI, Medicaid, cash assistance, or public housing. If you save your tax refund, it will not count against federally-funded benefit program resource/asset limits for 12 months after the refund is received. IF YOU HAVE CHILDREN Age: For the EITC, children must be under 19 at the end of 2015 (fulltime students can be under 24 and children who are permanently and totally disabled can be any age). For the CTC, children must be under 17 at the end of Residency: Children must have lived with you for more than half of Income for 2015: For the CTC, If you earned more than $3,000, you can claim a credit up to $1,000 per child. For the EITC, your earnings must be lower than the following limits: Children Single Married EITC up to: 1 $39,131 $44,651 $3,359 2 $44,454 $49,974 $5,548 3 or more $47,747 $53,267 $6,242 What to bring to a free tax site Valid picture ID Social Security Card, Social Security Number verification letter, or ITIN W-2 or 1099 forms Proof of health insurance (1095-A, 1095-B, or 1095-C forms) IF YOU DON T HAVE CHILDREN Age: You must be between 25 and 64 years of age. Income for 2015: If you earned less than $14,820 ($20,330 if married), you could receive an EITC refund up to $503. IF YOU ARE NOT A U.S. CITIZEN EITC: You, your spouse, and any child you claim must have a valid Social Security Number. CTC: You, your spouse, and any child you claim must have a Social Security Number or Individual Taxpayer Identification Number (ITIN). Health Insurance If you don t have health insurance, the Premium Tax Credit could cover most of the cost of a plan! Enroll between Nov. 1, 2015 and Jan. 31, Some people without insurance may face a penalty. Get more information at or

5 DO YOU QUALIFY FOR EITC? The Earned Income Tax Credit (EITC) is a way for you to get money you earned back into your pocket. You simply need to file a federal tax return, which you can do for free either with help from a free tax preparer or online by following these instructions. In order to be eligible for the EITC, you must: o o o o Have a valid Social Security Number Be a U.S. citizen or resident alien (Green Card). File a federal income tax return, including a Schedule EIC if you have one or more qualifying children Have earned income as defined by the IRS falling below set income limits. Use the IRS s EITC Assistant ( to estimate the amount that you will get. The tool is available in English and Spanish. If you are eligible for the EITC, then you can file your federal and state returns and claim your EITC for FREE on TaxAct.com. Detailed easy to follow instructions on how to file using TaxAct are attached. You can also go to TaxAct by clicking here or pasting in this URL. Go to CLAIMING YOUR EITC ON TAXACT 1. To enter information about your qualifying children, click the Basic Info tab. Then, click on Dependents. Enter the information for each dependent. 2. To enter earned income tax credit information, click on the Federal tab. Then, click on Credits. Scroll down to Earned Income Credit, and click Review. 3. On the Qualifications page, you are not eligible for the credit if any of the statements apply. 4. On Earned Income Credit - Qualifying Children page, click Review to change a child's information. Or, click Add another child to enter information for another qualifying child. Click Continue when you are done reviewing your qualifying child information. 5. If necessary, change income information on the Earned Income Credit - Calculation page. Then, click Continue. You must enter income information in the Income section under the Federal tab before TaxAct can calculate your earned income credit. 6. Your earned income credit amount will be shown on the Earned Income Credit - Summary screen.

6 CLAIMING YOUR EITC ON TAXACT 1. To enter information about your qualifying children, click the Basic Info tab. Then, click on Dependents. Enter the information for each dependent. 2. To enter earned income tax credit information, click on the Federal tab. 1

7 3. Then, click on Credits. 4. Scroll down to Earned Income Credit, and click Review. 2

8 5. On the Qualifications page, you are not eligible for the credit if any of the statements apply. 6. On Earned Income Credit - Qualifying Children page, click Review to change a child's information. Or, click Add another child to enter information for another qualifying child. Click Continue when you are done reviewing your qualifying child information. 3

9 7. If necessary, change income information on the Earned Income Credit - Calculation page. Then, click Continue. You must enter income information in the Income section under the Federal tab before TaxAct can calculate your earned income credit. 8. Your earned income credit amount will be shown on the Earned Income Credit - Summary screen. 4