How to Claim Working Family Tax Credits
As a low- to moderate-income working family, you may be eligible for tax credits. In particular, you may qualify for the federal tax credit for working families, the Earned Income Tax Credit (EITC), and a state credit. The EITC is a refundable credit, which means that it is deducted from your tax liability (what you owe the IRS at the end of the year) instead of your taxable income. If the credit is more than what you owe, the government will cut you a check for the difference.
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Instructions
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Determine if you qualify for the EITC by visiting IRS.gov or calling the IRS. Generally, you must have a Social Security number, have earned wages, be single or married filing together, be a U.S. citizen and meet the income requirements.
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Verify that your child qualifies to be claimed with the EITC. If your child does not qualify, you may still be eligible for the EITC. If your child qualifies, fill out Schedule EIC with your child's information, and attach it to your 1040.
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Locate all W-2s and any other documents showing your earned income for the year, including unemployment compensation, student loans and alimony. Determine your exemptions and deductions.
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Download a form 1040, 1040A or 1040EZ and fill it out. Refer to the EIC worksheet in your instructions.
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File your return by April 15, using a tax software program (such as TurboTax), a tax professional or via the IRS' Free File program (see link in "References," below).
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If you qualify for the EITC credit, you may also qualify for state working family tax credits. Contact your state office to see if you qualify or refer to the list of qualifying states below.
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Tips & Warnings
Use the EITC Assistant link at IRS.gov to help you estimate what your working family tax credit will be.
