Earned Income Credit

Back

Combat Pay

Although, combat pay is not included in income when calculating your federal income tax, you have the option of including combat pay as earned income when calculating the Earned Income Credit (EIC). You should calculate your return both ways (including and not including combat pay as earned income for EIC purposes) to determine which way gives you the more advantageous result.

Back to Top

Fraudulent or Reckless Claim

You will not be eligible for the Earned Income Credit if the IRS has determined that you have previously claimed the credit fraudulently or recklessly. A fraudulent claim results in a 10-year loss of eligibility. A reckless claim results in a two-year loss of eligibility.

Back to Top

No Qualifying Children

The Earned Income Credit is a refundable credit for low-income workers with earned income. The credit is available for taxpayers with or without children. For 2013, the maximum credit if you have not qualifying children is $487.

Back to Top

One Qualifying Child

The Earned Income Credit is a refundable credit for low-income workers with earned income. The credit is available for taxpayers with or without children. For 2013, the maximum credit if you have one qualifying child is $3,250.

Back to Top

Three or More Qualifying Children

The earned income credit is a refundable credit for low-income workers with earned income. The credit is available for taxpayers with or without children. For 2013, the maximum credit if you have three or more qualifying children $6,044.

Back to Top

Two Qualifying Children

The earned income credit is a refundable credit for low-income workers with earned income. The credit is available for taxpayers with or without children. For 2013, the maximum credit if you have two qualifying children is $5,372.

Back to Top