The credit is based on the amount of income earned and the number of qualifying children the worker has. Workers without a qualifying child get a smaller credit than those with one or more qualifying children. A qualifying child can be a son, daughter, adopted child, grandchild, great-grandchild, stepchild or eligible foster child. In addition, the taxpayer must care for the child as their own. To qualify, workers must have earned income from wages or self-employment.
Special rules apply to U.S. military personnel and to nonresident aliens.
While the IRS wants people who are eligible for the credit to claim it, they are also cautioning taxpayers who claim the credit to be certain they qualify. Most people can use the EIC instructions in their tax forms package to see if they can claim the credit. You may also download publications and forms from the IRS Web Site . Information is provided for informational purposes only and is not a substitute for professional legal, financial or credit advice. Hit the GameHouse to play Eliminator.