Tax Tip 2019-139: The earned income tax credit can put money in taxpayers’ pockets

Internal Revenue Service (IRS) sent this bulletin at 10/07/2019 11:38 AM EDT

IRS Tax Tips

October 7, 2019

Issue Number: Tax Tip 2019-139

The earned income tax credit can put money in taxpayers’ pockets

The earned income tax credit benefits working people with low-to-moderate income. Last year, the average credit was $2,445. EITC not only reduces the amount of tax someone owes, but may also give them a refund, even if they don’t owe any tax at all.

Here are a few things people should know about this credit:

Taxpayers may move in and out of eligibility for the credit throughout the year. This may happen after major life events. Because of this, it’s a good idea for people to find out if they qualify.
To qualify, people must meet certain requirements and file a federal tax return. They must file even if they don’t owe any tax or aren’t otherwise required to file.
Taxpayers qualify based on their income, the number of children they have, and the filing status they use on their tax return. For a child to qualify, they must live with the taxpayer for more than six months of the year.

Here’s a quick look at the income limits for the different filing statuses. Those who work and earn less than these amounts may qualify.

Married filing jointly:

Zero children: $21,370
One child: $46,884
Two children: $52,493
Three or more children: $55,952

Head of household and single:

Zero children: $15,570
One child: $41,094
Two children: $46,703
Three or more children: $50,162

The maximum credit amounts are based on the number of children a taxpayer has. They are the same for all filing statuses:

Zero children: $529
One child: $3,526
Two children: $5,828
Three or more children: $6,557

Taxpayers who file using the status married filing separately cannot claim EITC.

More information:
Publication 5334, Do I Qualify for EITC?

Share this tip on social media -- #IRSTaxTip: The earned income tax credit can put money in taxpayers’ pockets. https://go.usa.gov/xVAvr

Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov.

This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

Tax Tip 2019-139: The earned income tax credit can put money in taxpayers’ pockets

Useful Links:

News Essentials

The Newsroom Topics

IRS Resources

Issue Number: Tax Tip 2019-139