Earned Income Tax Credit (EITC)
Information for Tax Year 2022
The Earned Income Tax Credit (EITC) offers a tax break for eligible low- to moderate-income workers. For the tax year 2022, the possible credit amounts range from $560 to $6,935. Eligibility is determined based on income, filing status, and the number of children you have who live with you for more than half of the year.
The thresholds differ from year to year and major life changes may affect your eligibility. These changes include:
A new job
A loss of a job
Receiving unemployment benefits
A change in income
A change in marital status
A change in a spouse's employment situation
The birth or death of a child
Eligibility
To qualify for the credit, the following must apply:
You must be at least 25 years old
You must be a U.S. citizen or a resident alien for the entire year
You have a valid Social Security number by the due date of your tax return (including extensions)
Your filing status cannot be married filing separately
You must show proof of earned income. To learn what the IRS qualifies as earned income, please visit this link.
Your investment income must be below $10,300
You cannot claim EITC if you need to file a Form 2555, Foreign Earned Income
If you are a military member, clergy member, or have disability benefits for yourself or your children, there are special qualifying rules.
To determine if you are eligible, you can use the IRS's EITC assistant.
2022 Maximum AGI
Those who are eligible for EITC must have an AGI of less than the following thresholds, determined by filing status and number of children:
| Children | Married Filing Jointly AGI | Single, Head of Household, and Widow AGI | Max Credit Amount |
|---|---|---|---|
| Zero | $16,480 | $22,610 | $560 |
| One | $43,492 | $49,622 | $3,733 |
| Two | $49,399 | $55,529 | $6,164 |
| Three or More | $53,057 | $59,187 | $6,935 |
Refund Timing
Those who claim the EITC may have their refund delayed. By law, the IRS cannot issue refunds with EITC until March.
Get the Credits You Deserve
Tax laws are constantly changing and to ensure you're getting all of the credits and deductions you deserve, it’s best to file with a tax professional. Here at Northside Tax Service, we have experienced tax preparers who will work hard to maximize your refund or minimize your payments. Give us a call at (360) 922-0235 to get started.
Disclaimer: This material is prepared for informational purposes only, and is not tax advice. Please speak with a tax professional or view the resources below to see how this information may apply to you.
