Photo of Eric R. Ebbert, CFP®, MBA, CEO Eric R. Ebbert, CFP®, MBA, CEO Dec 11, 2020

Earned income credit, or earned income tax credit (EITC), is a refundable tax credit for workers with low or moderate income. For those who are eligible in 2020, EITC ranges from person to person from $538 to $6,660. 

To claim EITC, you must meet the criteria below. If you do, then make sure you claim it when filing your 2020 taxes.

  • You must have earned at least $1 of earned income (not from pensions or unemployment).
  • You must have earned no more than $3,650 from investments.
  • If married, you are filing jointly.
  • You cannot file a Form 2555 or Form 2555-EZ.
  • Both your earned income and adjusted gross income (AGI) are no greater than:
Filing status0 children1 child2 children3 or more children
Single, head of household, qualifying widower$15,570$41,094$46,703$50,162
Married filing jointly$21,370$46,884$52,493$55,952

Find out if you qualify for earned income tax credit

After looking at the information provided here, if you are still not sure whether you qualify for EITC, you can use the IRS’s EITC Assistant. This tool helps you find out if you are eligible for EITC or if you have any family members who are eligible, and it helps you estimate the amount of credit you can expect to receive.

You can also always talk with your personal financial advisor about EITC and other questions you have about taxes, savings, retirement and other financial areas of your life.

Talk to a ProVise CFP® professional about your tax strategy

Planning for filing your taxes can feel like trying to put together a 1,000-piece puzzle with pieces that all look the same. It can be a complicated task, but the outcome can be rewarding if you do it correctly. When filing for taxes, you do not want to miss out on tax advantages that you are eligible for. A seasoned financial professional can help you formulate a tax strategy as part of your personal financial plan.

Our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about planning for the tax season? Contact ProVise today to schedule a complimentary consultation.