Earned Income Credit

This is a refundable tax credit. For 2012 the maximum amount of income you can earn and still get the credit has increased. The maximum amount of investment income you can have and still get the credit has increased to $3,200. Here are the qualifying rules for 2012.

2012 AGI Threshold for EIC
Number of Qualifying ChildrenFiling Status SingleFiling as MFJ
3 or more$45,060 $50,270
2$41,952 $47,162
1$36,920 $42,130
0$13,980 $19,190

PART A: Rules for Everyone: You must meet all the rules of part A.

  1. Your AGI must be less than AGI Threshold Limit shown in above table.
  2. You must have a valid social security number.
  3. Your filing status cannot be MFS.
  4. You must be a US citizen or a resident alien all year.
  5. You cannot file Form 2555 or 2555-EZ relating to Foreign Earned Income.
  6. Your investment income must be $3,200 or less.
  7. You must have earned income. 

PART B: Rules if you have a qualifying child: You must meet all the rules of Part B.

  1.  Your Child must meet the relationship, age, residency, and joint return tests.
  2.  Your qualifying child cannot be used by more than one person to claim the EIC.
  3.  You cannot be a qualifying child of another person. 

PART C: Rules if you do not have a qualifying child: You must meet all the rules in Part C.

  1.      You must be at least age 25 but under age 65.
  2.      You cannot be dependent of another person.
  3.      You cannot be a qualifying child of another person.
  4.      You must have lived in United States more than half of the year. 

PART D: Figuring & claiming the EIC:

Your earned income must be less than: (refer to table given above)

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