what is earned income credit when filing taxes?

Question

i am trying to fill out my student financial aid and it asks me what is my earned income credit and i have no idea wat that is.

Answer 1

Earned income is just what it sounds. It is income you made by working, interest income, dividend income. All the income you had coming in during the year.

Irina

Answer 2

The Earned Income Credit is money that's given to low-income people who work, in addition to any tax refund they have coming, as an incentive to work.

If you don't have a qualifying child, you must be between 25 and 65 to qualify for the credit, you can't be the dependent of another person, and your income must be under $11,750 (13,750 joint income if you're married). If you do have a qualifying child, see irs.gov, download publication 17, look at page 235.

If you don't meet those rules (for example if you're under 25 with no children), then you were not eligible for the credit so your EIC is zero. If you meet the rules, look at your tax return from last year if you filed one, and see if an EIC amount is listed - if not, or if you didn't file, put zero on your financial aid form.

Answer 3

earned income credit is the credit the gov't gives you for not making too much money.you have to have worked for the money, and not made too little or too much.
any kind of income made from interest, dividends, welfare, child support, alimony, etc that you received, but did not work for does not count.
If you had an earned income credit it would show up on your 1040 (1040, 1040A, 1040EZ) form, when you filed your taxes last year. I can't remember if you HAVE TO HAVE children or if you just get A LOT more credit for having them. So, I recommend going to the IRS website and seeing if what they say makes any sense to you.
Hope this helps.