How to Determine the EIC on Returns
The EIC is the Earned Income Credit for United States federal tax returns, also known as the EITC, the Earned Income Tax Credit. This is a refundable credit for lower income individuals. A refundable credit means, even if your tax liability is zero, the earned income tax credit will give you more money back in the form of a refund. The Internal Revenue Service will calculate this for you, but you can estimate your EIC.
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Instructions
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Go to the "Tips and Guidance for Estimating Credit Amount" located in the resources. This is a source for you to estimate the amount of your EITC if you paper file or eFile. If you do not want to calculate the credit, as long as you include Form 1040 EIC with your return, either paper or eFiled, then the IRS will automatically calculate the credit for you.
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Select the filing status on your return. Then "Continue."
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Enter the number of children you have on your return as a dependent and click "Continue."
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Enter the amounts from the first page of your Form 1040. These are listed on the top part of the page. Press "Continue." If you already filed out your income taxes, then these amounts are on your filled out form. However, if you have not, these amounts are forms of income, such as wages, interest, dividends, business income or any other taxable cash inflows.
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Enter the amounts from the first page of your Form 1040. These are from the bottom part of the page. If you have not filled out your Form 1040 yet, then these amounts are deductions before you calculated adjusted gross income. These include items such as student loan interest deduction, moving expenses and alimony paid. If you need a general estimate, just look at the Form 1040 and see if you qualify for any of these reductions to adjusted gross income. Press "Continue." Your EIC amount then displays.
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References
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