How long do I have to work, or how much income do I need to earn to be able to get Earned Income Credit ?

Question

When I file my taxes usually I qualify for Earned Income Credit, what are the qualifications ?

Answer 1

Here is a link to the IRS Earned Income Credit "Assistant". It will help you determine your eligibility, including earned income requirements:

http://www.irs.gov/individuals/article/0,,id=96406,00.html

Earned income and adjusted gross income (AGI) for 2007 must each be less than:
$37,783 ($39,783 married filing jointly) with two or more qualifying children;
$33,241 ($35,241 married filing jointly) with one qualifying child;
$12,590 ($14,590 married filing jointly) with no qualifying children.
Tax Year 2007 maximum credit:

$4,716 with two or more qualifying children;
$2,853 with one qualifying child;
$428 with no qualifying children.

Investment income must be $2,900 or less for the year.

Here is a link to a PDF file on th IRS site that will help you with the computation.

http://www.irs.gov/pub/irs-pdf/p596.pdf

Basically, as long as you meet the other qualifications as long as you have $1 of earned income (as determined by the worksheet) you are eligible.

Note: It is EARNED income that we are talking about, not total income. If you think that you are eligible for the credit you may be able to file a W-5 with your employer and receive an advance payment on the credit. In order to do so you must have a qualifying child.

Doing so, however, will REQUIRE you to file your 2007 taxes, whether or not you meet the other filing requirements.

Answer 2

Time is not considered in the EIC rules. The minimum income that qualifies for the EIC is $1.00. The maximum is between $31,000 and $38,000 depending on filing status and number of qualifying children. At either end, the EIC is less than $10.00. The maximum amount of EIC is $4536 in the $11,000 to 15,000 income range. All or these numbers are for the 2006 tax year.