The Earned Income Credit is a refundable credit that is offered to individuals and families that have lower income. This can help lower-income families tremendously.
In previous filing years, this credit has been maxed out at two dependents, but it has been increased to accommodate larger families that have three or more dependents.
How Much Can You Qualify For?
The EITC is a refundable federal tax credit to help low to moderate-income working people and their families.
If you qualify, the credit can increase your federal tax refund by up to $6,431.00. But you have to file a tax return to claim the Earned Income Tax Credit.
Even as an individual with no dependents, you could still receive a credit. If you are familiar with the credit and you know you will qualify, then go ahead and claim what’s yours.
Claiming the EITC
You can claim the credit by using an online tax service or by filing with pen and paper. Free online tax estimators are perfect for calculating your earned income credit and then claiming the credit.
How to Calculate Your Earned Income Credit Amount
With online tax software, you can calculate your credit amount for free. The credit amount will vary depending on your income and the number of qualifying dependents you have to claim.
Once you have your estimated amounts for your (EITC), you are then able to use the tax software and claim the Earned Income Tax Credit.