All You Need to Know About Earned Income Tax Credit

August 23, 2021

Due to the impact caused by Covid-19, many social programs came into play to help the most vulnerable members of the country's workforce: low-income workers and families. One of these programs is the Earned Income Tax Credit (EITC), created to support this group through timely financial aid.


The program is part of a temporary relief that's granted as per the Taxpayer Certainty and Disaster Tax Relief Act of 2020. We will now tell you all you need to know about the Earned Income Tax Credit, including the means to help you know whether you qualify for the program.

What Is the Earned Income Tax Credit?

The Earned Income Tax Credit (EITC) is a tax credit given to low- to moderate-income workers, serving as a financial boost toward this portion of the country's workforce. The tax credit is refundable, so workers can get their money back, even if they are free of tax-related debts. If you happen to be eligible for this tax credit, you can use the aid to reduce the taxes you owe, and maybe also increase your refund.

Who Qualifies for the Earned Income Tax Credit (EITC)?

To qualify for this tax credit, there are a number of factors at play, like family unit, marital status, and the income earned inside the household. If your earned income in 2019 surpasses your accrued earnings in 2020, you may use the 2019 amount to determine your Earned Income Tax Credit for 2020. Now, if your Earned Income Tax Credit outstrips the tax amount you owe, you may request a refund.


You should be clear on the fact that the amount of money earned in the tax year you claim the credit will go a long way into deciding whether you're eligible for the tax credit. For the 2020 tax year, workers filing an income below $57.000 can request a maximum refund of $6.660.

What Are the Requirements to Obtain the Earned Income Tax Credit (EITC)?

If you think you're eligible for the Earned Income Tax Credit, you must look into the following requirements:

Have a valid Social Security number to work.

Have earned income from a third party's dependent salary.

Number of children supported by the income. You can also qualify if you have no children.

Have investment income below $3,650 in the tax year you claim the credit.

Be a U.S. citizen or a resident alien all year.

Not filing separately if you're married.

Not being the offspring of a person also eligible for the credit.

Not filing 2555 or 2555-EZ (related to foreign earned income).

How Can You Request the Earned Income Tax Credit (EITC)?

In order to request the Earned Income Tax Credit, you must provide your 2020 tax return. If you still haven't, you can do so during the extension period afforded by the Internal Revenue Service (IRS) which allows taxpayers to file their tax return until May 17, 2021. You can also file your tax return to request the credit if you don't have a pending tax obligation.

Additionally, you can request the Earned Income Tax Credit for 2018 and 2019 if you still haven't gotten around to it. You just have to provide the corresponding tax return, along with the ones for 2020.


Now, if you have eligible child(ren) while filing your tax return, you must also file Schedule EIC listing your qualifying children, including Form 1040A and Form 1040. If you have no qualifying children, use Form 1040EZ. If you know where to find these documents but don't know how to move on from there, you can request the help of a tax preparer to fill out the necessary forms and file your tax return accordingly. This way you can get started with the process to obtain the Earned Income Tax Credit.

Specialized Assistance to Help you Get the Earned Income Tax Credit

These requests often entail a convoluted process, especially when you're not familiar with the proper procedure. This is why we invite you to get specialized assistance from one of our professional tax preparers. They will tell you all you need to know about Earned Income Tax Credit.


At United Tax & Accounting Group, we provide our tax preparation services to help you with everything you need and the latest technology to guarantee accurate results in all your calculations. You will be able to make the best of all potential tax benefits and remove yhe stress involved in filing your tax return.

You can request our specialized tax preparation services from one of our tax preparers by calling (786) 431-5576 or filling out the contact form in our website. We'll be happy to give you all the assistance you need to request the Earned Income Tax Credit.