Are you eligible for this $6,242 tax credit?

Are you eligible for this $6,242 tax credit?
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When you file your taxes, the hope is often that you can get the most possible money back. And the Earned Income Tax Credit, or EITC, may be able to help.

Some people don’t have to file a tax return. If your income for the previous year is less than the standard deduction plus one exemption, and you aren’t a dependent to another taxpayer, then you don’t need to file a federal tax return.

But, even if you don’t owe any tax or aren’t required to file a return, there might be enough money left on the table to warrant filing. Depending on your income and your number of dependents, the EITC could be worth as much as $6,242.

Read more: IRS Free File program lets you access free tax software

Who qualifies?

So who qualifies for this tax credit?

According to the IRS, this following types of people qualify:

  • If your Adjusted Gross Income (AGI) is less than $14,820 and you’re single.
  • If you’re married filing jointly and your AGI is less than $20,330.
  • If you have three or more kids and are married, your AGI limit can be as high as $53,267.

Read more: Beware of these common IRS scams

For example, say you filed a joint return with your spouse and you have three children. If you made $20,000, but your spouse does not work and you don’t have any other deductions, you’d receive the full amount of $6,242.

If you made $40,000, but contributed $5,500 to an IRA, you’d receive $2,789 in Earned Income Tax Credit. (This is still assuming you’re married filing jointly with three children.)

To see if you qualify for the earned income tax credit, take the assessment on the IRS website here.

Read more: Little-known tip that can reduce your tax bill by over $1,000

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Charis Brown About the author:
Charis Brown is the Senior Deals Editor for Her favorite discount store is Nordstrom Rack, where she once bought something for $.01! She and her husband Justin paid off $27,000 of debt in 11 months and now live debt-free.
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