If you're eligible for the Earned Income Tax Credit (EITC), also called the Earned Income Credit (EIC), the credit is calculated automatically as you enter your tax information into the program. There's no separate calculation required.
The EITC is a refundable credit designed to help workers with low to moderate income. Depending on your situation, the credit can:
- Reduce the amount of tax you owe.
- Increase your refund.
- Provide a refund even if you have no tax liability.
Because eligibility is based on several factors, including income, filing status, investment income, and qualifying children, the credit amount varies from taxpayer to taxpayer.
How Do I Find My Earned Income Credit Amount?
To view your Earned Income Credit amount in the program:
- Select Review/Summary from the sidebar menu.
- Click the section labeled Payments on the return summary.
- Locate Earned Income Credit (EIC).
The credit amount will appear next to Earned Income Credit.
If no credit is shown, select Why is there no Earned Income Credit? to view an explanation of why the credit was not allowed.
Where Does the EITC Appear on My Tax Return?
- The Earned Income Tax Credit is reported on Form 1040, Line 27.
- If you're claiming one or more qualifying children for the credit, Schedule EIC will also be included with your return.
How Is EITC Eligibility Determined?
Eligibility depends on several factors, including:
- Earned income
- Adjusted gross income (AGI)
- Filing status
- Number of qualifying children
- Investment income
- Age requirements
- Residency requirements
The program reviews all entered information and automatically determines whether you qualify and calculates the allowable credit.
For full eligibility rules, income limits, and credit calculations, click here.
What If My Earned Income Credit Was Previously Disallowed?
If the IRS previously disallowed your Earned Income Tax Credit and you're now eligible to claim it again, you may need to file Form 8862, Information to Claim Certain Credits After Disallowance.
You can review the Knowledgebase article about Form 8862 here.
What Else Should I Know?
The Earned Income Tax Credit is one of the most valuable refundable credits available to eligible taxpayers. To ensure the credit is calculated correctly, make sure all income, dependent, and personal information is entered accurately before reviewing your return summary. Once your return is complete, the program will automatically calculate and include any EITC you're eligible to receive.