Here is a word from the Goodfellas at the IRS:
IRS Special Edition Tax Tip 2013-03
The Earned Income Tax Credit has made the lives of working people a little easier since 1975. EITC can be a boost for workers who earned $50,270 or less in 2012. Yet the IRS estimates that one out of five eligible taxpayers fails to claim their EITC each year. The IRS wants everyone who is eligible for the credit to get the credit that they’ve earned.
Here are the top five things the IRS wants you to know about this credit.
- You do not qualify for EITC if your tax filing status is Married Filing Separately.
- You must have a valid Social Security number for yourself, your spouse – if filing a joint tax return – and any qualifying child listed on Schedule EIC.
- You must have earned income. You have earned income if you are paid wages, you are self-employed, you have income from farming or you receive disability income.
- Married couples and single people without children may qualify. If you do not have qualifying children, you must also meet age and residency requirements as well as dependency rules.
- Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay as earned income for the purpose of computing the EITC. Even if you make this choice, your combat pay will remain nontaxable.