• EIC (aka EITC) is available to people who have earned income, subject to income and age limits.
    • A taxpayer without a child cannot get EIC unless the taxpayer is between age 25 and age 64 at the end of the tax year.
      • If filing MFJ without a qualifying child, only one taxpayer must meet the age requirement.
    • Note for CA returns:  For CalEITC, taxpayers 18 years and older are eligible, regardless of whether there is a qualifying dependent (details on page 113).
  • EIC is a refundable credit – it isn’t necessary to owe federal tax to claim the credit.
  • To claim EIC for a dependent, that dependent must have a Social Security number.
    • Warning: a return can’t be amended to retroactively claim EIC after a dependent gets an SSN. If the taxpayer expects to get that SSN by October 15, s/he must file an extension rather than file the tax return in order to preserve the right to EIC for that dependent.
  • For 2024, the income limits (after which the taxpayer is not eligible for EIC) are:

Filing Status

Qualifying Children Claimed

Zero

One

Two

Three or More

Single, HoH, or QSS

$18,591 

$49,084 

$55,768

$59,899 

MFJ

$25,511 

$56,004 

$62,688 

$66,819
    • Note: MFS returns that meet certain criteria can qualify for EIC (for 2021 returns and later).
      • CA process note: MFS returns that meet CA scope requirements, above, should have EIC if all other requirements (earned income, AGI, age if no dependents) are met. 
  • If TaxSlayer has determined that a return doesn’t qualify for EIC, this shows at the top of the Calculation Summary page – the first page when an existing return is opened (and, of course, available from the left navigation bar by clicking “Summary/Print”).
    • The notice (in a box with a light green background) is titled “REASONS FOR NO EARNED INCOME CREDIT (EIC).” 
  • If EIC was disallowed in a prior year, more information must be entered to claim EIC on subsequent returns:
    • The Information to Claim Certain Refundable Credits After Disallowance menu page [Deductions > Credits Menu > Claiming Refundable Credits after Disallowance > ...], reachable via the search box by entering 8862, is needed only very infrequently for EIC issues. It is used when you need to (a) claim eligibility for the EIC when that has been disallowed in a prior year, or (b) to disallow EIC when TaxSlayer has calculated an amount for that credit. 
    • Note: If the IRS makes a final determination that the EIC claim was due to reckless or intentional disregard of the rules, the taxpayer is barred from claiming that credit for the following two tax years and should not file Form 8862 in either of those years. If the final determination is that fraud was involved, the prohibition is for ten years rather than two; do not file Form 8862 during this ten-year period.
    • Note: Once a Form 8862 has been filed, it is not necessary to file that form in future years unless a claim for this credit is again reduced or disallowed.
  • To check the amount that TaxSlayer has calculated for EIC, you can go to the Calculation Summary page (via Summary/Print on the left navigation bar) to see the entry on Form 1040 Line 17a.

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