Eligibility for EITC, ALABAMA'S # 1 TAX SERVICE

Besides filing a tax return, people must meet various requirements. Some of these requirements apply to everyone. Then there are additional requirements that apply to those who have one or more children, and another set of requirements that apply to people who don’t have a qualifying child.
Rules for every taxpayer:

• Must have earned income, such as wages, tips or the income from running a business or farm. Most other types of income, such as retirement pensions, though usually taxable, do not count as earned income.
• Must have a Social Security number that is valid for employment for self, spouse and any qualifying children.
• A person can get the credit even with a small amount of investment income, such as interest from a bank account. However, the amount of investment income is limited to $3,200.
• The filing status used must be single, head of household, married filing jointly or qualifying widow or widower. A taxpayer who files as married filing separately cannot get the credit.
• Generally, must be either a U.S. citizen or resident alien.
• Cannot be a qualifying child of another person.
• Cannot file Form 2555 or Form 2555-EZ. These forms are used to claim the foreign earned income exclusion, a tax benefit for Americans who live and work abroad.

In addition, income must be below certain limits. For tax year 2012, both earned income and adjusted gross income (AGI) must each be less than:

• $13,980 ($19,190 married filing jointly) with no qualifying children
• $36,920 ($42,130 married filing jointly) with one qualifying child
• $41,952 ($47,162 married filing jointly) with two qualifying children
• $45,060 ($50,270 married filing jointly) with three or more qualifying children

MOORE'S SERVICE, LLC

2160 Green Springs Hwy, S. Suite E. 

Brimingham, AL 35205

Phone: (205) 324-8753

Email: mooresservices1@gmail.com

Website: www.mooresservicesonline.com

Blog: www.mooresservices.blogspot.com

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