What Is the Bracket for Earned Income Credit?
- Although the credit was created mostly for working families, if you have no qualifying children you may still be eligible for the credit if your income falls between $1 and $13,450 if you are filing "Single," "Head of Household" or "Qualifying Widower." If you are filing "Married Filing Jointly" your income can be between $1 and $18,450. To qualify, you cannot be a dependent on another person's taxes, you must be between the ages of 25 and 65, and you must have lived in the U.S. for more than half of the year.
- Taxpayers with one qualifying child can claim the Earned Income Credit if their adjusted or total gross income (whichever is lower) is between $1 and $35,500. With two qualifying children the income can be between $1 and $40,350 and with three children it can be between $1 and $43,350.
- Taxpayers who file "Married Filing Jointly" can take the Earned Income Credit if they have one child and their income is between $1 and $40,500, if they have two children and their income is between $1 and $45,350 or if they have three children and their income is between $1 and $48,362.
- Taxpayers who are filing "Married Filing Separately" cannot take the Earned Income Credit regardless of their income or number of qualifying children. Those who would normally qualify with their income are encouraged to file under another filing status, if applicable, to receive the credit.
- If you have investment income you may still qualify for the Earned Income Credit if your investment income is less than $3,100. If you investment income is more than $3,100, you cannot take the Earned Income Credit regardless of other income or qualifying children. You can use Worksheet 1 to determine whether your investment income exceeds the limits.
- The Earned Income Credit is only for taxpayers who earned their income through wages, salaries and tips or other taxable employee pay. This income may also be from self-employment earnings or from income received as a statutory employee. Nontaxable combat pay may also be used to qualify for the Earned Income Credit but this is optional. Using this pay can increase or decrease your credit so it is best to figure the taxes both ways for maximum benefit.