In 2010, nearly 27 million Americans claimed the Earned Income Tax Credit (EITC) for a total of $59.5 billion. Could you use some of that cash? Then take our quiz to find out if you qualify and how to claim your money.
The EITC is an income tax credit designed to help which of the following segments of American taxpayers?
working Americans with low incomes
The EITC is an anti-poverty measure built into the U.S. tax code to help lift working Americans above the poverty line.
To claim an EITC with children, your children need to "qualify" under IRS rules. Which of the following children would NOT qualify under those rules?
your 2-year-old grandchild who lives with you
your 16-year-old cousin who lives with you
your 18-year-old biological son who lives with your ex-husband
The three "tests" for qualifying children are age, relationship and residency. In this case, even though your son meets the age and relationship criteria, he doesn't live with you, so your ex-husband is the one who would include him in an EITC claim.
If you're claiming the EITC without any children, can you claim the credit after the age of 65?
The qualifying age range for claiming the EITC as a single person or married couple without qualifying children is 25 to 65 years old. There is no age limit for those claiming the credit with children.
How many families that are eligible for the Earned Income Tax Credit fail to claim it each tax year?
One-fifth of qualified families fail to claim the credit, so the Internal Revenue Service and Congress are trying to get the word out about the EITC so that more eligible families can benefit from the credits.