Can I Get Earned Income Credit for My 17 Year Old

Editor's Note:  Learn more virtually the Earned Income Credit requirements – similar how to qualify to receive this tax credit.

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The Earned Income Taxation Credit (EITC or EIC) is a refundable revenue enhancement credit. That ways, even if your tax liability is naught, if yous qualify for the EITC, the credit volition be paid to you. It was created to do good low-income, working families. Even so, the criteria for challenge the credit can be confusing.

Earned Income Credit qualifications

It's estimated that but four out of five families who qualify for EITC claim the credit.

EITC requirements

Here are EITC requirements:

1. Your earned income and adjusted gross income are within certain limits – in 2022 your earned income must exist less than $57,414 if you're married filing jointly with three or more children. The levels vary based on filing status and number of children.
2. You lot meet the basic rules (valid SSN, qualifying filing condition, U.S. citizen or resident, and other income requirements)
3. Yous either:
   • Meet the rules for those without a qualifying kid (you cannot exist claimed as a dependent or be a qualifying child of some other person, you meet historic period requirements, and you lived in the U.S. more than half the twelvemonth); or
   • Have a child that meets all the qualifying child rules for you, or your spouse, if y'all file a joint return (SSN, relationship, historic period, residency, and joint return), your qualifying child tin't be used by more i person to merits the EIC, and y'all aren't the qualifying child of another person.

Below is an caption of the criteria for claiming the EITC, broken downwards into smaller pieces to make it a scrap easier to understand.

EITC income requirements

Earned income is, more often than not, coin either paid to you by an employer or money you earn past operating your own business or farm. Earned income includes wages, tips, salaries, not-taxable combat pay, union strike benefits, and certain long-term disability benefits.

The post-obit is Not earned income: retirement income, Social Security, unemployment benefits, alimony, and child support.

You must have $10,000 or less in investment income. You must not file whatsoever foreign earned income exclusion form.

Both your earned income and adjusted gross income must exist no more than:

Children or Relatives Claimed	Maximum AGI (filing as Single, Head of Household, Widowed or Married Filing Separately*)	Maximum AGI (filing as Married Filing Jointly)
Cypher	$21,430	$27,380
One	$42,158	$48,108
Two	$47,915	$53,865
Iii	$51,464	$57,414

EITC filing status

In the by, a taxpayer using Married Filing Separately could not claim the EITC. Showtime in 2021, yous must meet additional requirements to claim the EITC if yous are separated from your spouse and practise not file a articulation return. This may apply if you lived autonomously from your spouse for the last half-dozen months of the yr or are legally separated according to country police force under a written separation agreement or a decree of dissever maintenance and you didn't live in the same household every bit your spouse at the end of the yr.

Any other filing status is fine (Married Filing Jointly, Unmarried, Caput of Household, or Qualifying Widow(er)).

EITC residency requirements

The taxpayer and qualifying kid must live in the same home for more than half of the year. That means more than six months or 183+ days. That residence must be in the fifty U.S. states and the District of Columbia. The taxpayer claiming the EITC must exist a citizen or resident of the U.S. (i.due east., they must non exist a not-resident conflicting).

Examples:

1. Paul lives at home from Jan until May, at which point he graduates high school and moves into an apartment of his own. Despite that, his parents still provide him financial assistance because he is unemployed. Since Paul merely lived with his parents for 5 months of the year, he will not meet the residency test.
2. Marker and Lauren give nascence to their son in Kansas City in January. In April, they motility to Canada for a job opportunity. They cannot merits the EITC because they did not maintain a U.Due south. residence for more than vi months.

Special rules utilize to armed services personnel stationed outside the U.Due south., children who born or died during the yr, and other circumstances including adoption.

EITC citizenship requirements

The qualifying child must be a U.Southward. denizen, national or resident. Again, the taxpayer claiming the EITC must also be a U.S. citizen or resident alien for the tax yr. The kid, taxpayer and all individuals for which the EITC is based upon on the tax return must have valid Social Security numbers.

Examples:

1. Maria and Felix are U.S. citizens. They claim their daughter, Penelope (also a citizen), 6, as a dependent. Marie and Felix also claim a daughter from a previous matrimony, Sofia, 12, who was living in Mexico but came to alive with them. Sofia has an ITIN because she is in the process of becoming a citizen just is non yet a U.S. citizen. Tin the couple claim the EITC with Penelope every bit their qualifying child? Yes, as Penelope is a U.Southward. citizen with a valid SSN. Can the couple claim the EITC with Sofia as their qualifying child? No, because Sofia does not have a valid SSN.
2. Paul and Lauren are in the process of adopting a child, Lilly. She has been placed with the couple, but the adoption is not yet last. They have not been able to get Lilly'southward social security number, so they will file a taxation return for her using an ATIN (Adoption Revenue enhancement Identification Number). They cannot merits Lilly every bit a qualifying child for the EITC. If they call back they can become an SSN for Lily past October 15 they should consider filing an extension and challenge the EITC when the SSN is available. Otherwise, they won't be able to merits EITC for Lilly until side by side year's tax return.
3. Kai and Zehra are studying in the U.S. on pupil visas. They also take two children in the U.South. with them. They all apply ITINs ( Private Taxpayer Identification Numbers ) to file a tax return. They tin't claim the EITC.

EITC age requirements

The qualifying kid claimed must be younger than the taxpayer (or the taxpayer's spouse if filing jointly) or totally and permanently disabled. Additionally, the qualifying kid must either be: under 19, under 24 and a full-time educatee or whatsoever age and totally/permanently disabled.

Examples:

1. Shelly, 18, can claim her daughter, Stella, 2, for the EITC.
2. Mark, l, can claim his girl, Lauren, 21, for the EITC. Lauren is enrolled in college full-time.
3. Pam, 55, wants to claim her son, Patrick, 23, for the EITC considering he lives at dwelling house. Because he is not attention school full-time, she cannot claim him. This is so even if Pam can merits Patrick equally a dependent qualifying relative.

EITC human relationship eligibility

The child must exist the taxpayer'due south son, daughter, stepson, stepdaughter, eligible foster kid, adopted child, or brother, sister, half-sibling, stepsibling, or descendant of whatsoever of these individuals. Someone who merely meets the "qualifying relative" test is never eligible to be claimed for purposes of the EITC.

Examples:

1. A mother claims son – yes!
2. An older blood brother claims younger stride-sis – yes!
3. A grandfather claims grandson – yes!
4. A man lives with his girlfriend and her kid. He is non the child's father. He cannot claim the kid for the EITC, even if all other tests are met.

Earned Income Credit qualifications for claiming dependents

Now that we've reviewed age, relationship, citizenship, and residency eligibility for EITC, here's more information well-nigh the Earned Income Credit qualifications for claiming dependents.

A taxpayer who is a qualifying child of another taxpayer for EITC purposes may not merits the EITC for his or her own child (regardless of whether the other taxpayer tin or does claim the EITC).

However, a married child is but a qualifying child for EITC purposes if the taxpayer may claim a dependency exemption for him or her (i.e. the kid passes the joint return test).

Examples:

1. Donna is 22 years old and a total-fourth dimension pupil. She has a part-time job and earns $v,000. She lives with her female parent Abby and Donna's 1-year quondam son Jed. Donna is a qualifying kid of Abby because she meets the historic period, relationship, residency, and joint return tests. Therefore, Donna may not claim Jed for the EITC. Abby may exist able to claim both Donna and Jed for EITC and other tax benefits depending on her income and other requirements.
2. Your qualifying child may not exist used by more than than one person to claim the EITC. Sometimes a child meets the tests to be a qualifying child of more than one person. However, only one of those people can treat the child as a qualifying kid. You lot mostly cannot split up the tax benefits of ane kid. At that place are exceptions for divorced and separated parents, but you still tin't divide EITC.
3. If a child qualifies for more than than 1 person and 1 of the persons is a parent or parents, the non-parent can claim the child just if their adjusted gross income (AGI) is college than the parent(south) and the parent(s) concord. If the child is a qualifying child of other taxpayers (non parents) , the child is treated as a qualifying child only of the taxpayer with the highest AGI. If more than one person claims the same child, IRS applies the tiebreaker rules.

More help with the Earned Income Credit

For more information on claiming the Earned Income Credit, get assistance from H&R Block. Whether you make an appointment with one of our knowledgeable tax pros or choose one of our online tax filing products, you tin count on H&R Block to assistance you get back the most coin possible.

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Source: https://www.hrblock.com/tax-center/filing/credits/eitc-requirements/

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