Since it was enacted almost 40 years ago, the Earned Income Tax Credit has been helping boost revenues of low and moderate income workers. The IRS reports that four of every five employees eligible for the EITC claim the benefit, however they’d like to see everyone who qualifies take advantage of it.

If you qualify, this tax credit can help you give your budget a little extra wiggle room this tax season. Some facts about the EITC that you need to know:

Eligibility: 

Even if you haven’t qualified in the past, if your family or financial situation has changed, there’s a chance you may be eligible this year. Review the requirements yearly, because you have to claim the credit on your taxes in order to receive it. You must have worked through the year and earned an income under $52,427. You can still file a claim for the credit even if you aren’t required to file a tax return.

Rules:

The EITC has a specific set of guidelines, and it’s important to follow them correctly in order to get the credit. Consider the following:

• You can’t file Married Filing Separately.
• All parties listed on the return, (you, your spouse, and dependent children) must have a valid Social Security Number.
• Income such as wages, self-employment, and farm income, must have been earned during the tax year.
• If you’re married or single, you can be eligible for the credit whether you have children or not. However, without children, you have to meet additional age, residency and dependency restrictions.
• Special guidelines apply to all military personnel serving in a combat zone.

The Earned Income Tax Credit can decrease the amount of federal taxes you owe, which can grant you a refund. Qualified taxpayers can receive a credit worth up to $6,143. That’s reason enough to see if you qualify today!