TaxACT will automatically calculate the earned income credit based on the information entered in your return. If you qualify for the credit, the amount will be included as a Payment
on your Federal Tax Summary. You must enter your income and dependent information before the credit can calculate.
To review your earned income credit information:
- From within your TaxACT return (Online or Desktop) click on the Federal Q&A tab
- Click Other Credits to expand the section, then click Earned Income Credit
- The program will proceed with the interview questions for you to enter or review your EIC information
The Earned Income Tax Credit (EITC or EIC) is a refundable income tax credit for working individuals and families with modest incomes. As a refundable credit, the EIC becomes a tax refund when the amount of the credit exceeds the amount of tax owed.
For 2014, the credit is worth a maximum of:
- $6,143 with three or more qualifying children
- $5,460 with two qualifying children
- $3,305 with one qualifying child
- $496 with no qualifying children
In order to qualify for the credit, your adjusted gross income (AGI) must be less than:
- $46,997 ($52,427 married filing jointly) with three or more qualifying children
- $43,756 ($49,186 married filing jointly) with two qualifying children
- $38,511 ($43,941 married filing jointly) with one qualifying child
- $14,590 ($20,020 married filing jointly) with no qualifying children
Your total investment income must also be $3,350 or less for the year.
See the IRS website EITC Central for more information.