If you earn income and make less than $49,194 in 2018 ($54,884 if filing jointly), you may qualify for the earned income credit. This credit is refundable – meaning you may get more money in your refund than you had withheld from your pay. In fact, you may get money back even if you didn't have any income tax withheld from your pay.
The earned income credit can be substantial – up to $6,431.
The income limitations are highest for taxpayers with three or more children. To receive this credit, both your earned income and adjusted gross income must be less than:
To qualify for the earned income credit, you must have a valid Social Security Number (SSN). If your card or your spouse's card (if filing jointly) says Not valid for employment and you received a SSN so you could get a federally funded benefit, you cannot claim the credit.
You must not use the Married Filing Separately filing status. You must be a U.S. citizen or resident all year, unless you file jointly, one spouse is a U.S. citizen or resident alien, and you choose to treat the nonresident spouse as a U.S. resident. You cannot claim the earned income credit if you deduct or exclude foreign income or housing on Form 2555, or if you have investment income of more than $3,500. In addition, you cannot be the qualifying child of another person.
TaxAct calculates your earned income credit based on your wages and other earned income, your adjusted gross income, and the number of qualified children you have living with you.
A common mistake is to forgo claiming a qualifying child for the earned income credit because you have agreed to let the noncustodial parent claim the dependency exemption for that child. The dependency exemption and a qualifying child for the earned income credit are two separate issues. Only the parent with whom the child lives the longest can claim a child for the earned income credit. If the time is equal, the parent with the higher adjusted gross income takes the credit.
You may still qualify for the earned income credit if you do not have a qualifying child. You must be at least age 25, but under age 65. (If you're married, only one of you must meet the age test.) You cannot be the dependent of another person, and you must live in the U.S. more than half the year.
If you may qualify for the credit, TaxAct asks a few questions in the step-by-step interview and does all the calculations for you. If you have a qualifying child, TaxAct calculates the credit on Schedule EIC, Form 1040.
March 1 — Farmers & fishermen
File your 2018 income tax return (Form 1040) and pay any tax due Details
March 10 — Employees who work for tips
If you received $20 or more in tips during February, report them to your employer Details
March 15 — S Corporations
File a 2018 calendar year income tax return (Form 1120S) and pay any tax due Details
March 15 — S Corporation election
File Form 2553, Election by a Small Business Corporation, to elect to be treated as an S corporation beginning with calendar year 2018. If Form 2553 is filed late, S corporation treatment will begin with calendar year 2019.
March 15 — Partnerships
File a 2018 calendar year return (Form 1065) Details
March 15 — Electing larger partnerships
Provide each partner with a copy of Schedule K1 (Form 1065B), Partner's Share of Income (Loss) From an Electing Large Partnership, or a substitute Schedule K1. This due date applies even if the partnership requests an extension of time to file the Form 1065B by filing Form 7004
March 15 — Partnerships
Electing large partnerships: File a 2018 calendar year return (Form 1065-B) Details
March 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule Page 6 Publication 509 applies, deposit the tax for payments in February.
March 31 — Electronic filing of Forms W2
File copies of all the Forms W2 you issued for 2018. This due date applies only if you electronically file.
March 31 — Electronic filing of Forms W2G
File copies of all the Forms W2G you issued for 2018. This due date applies only if you electronically file.
March 31 — Electronic filing of Forms 8027
File Forms 8027 for 2018. This due date applies only if you electronically file.