Qualifying For 2016 Earned Income Tax Credit

Basically the earned income tax credit, otherwise known as the EIC or EITC, is a special benefit for working people that earn low to moderate income. A tax credit can also be considered as an incentive that lets the taxpayers subtract the credit from the overall amount that they owe the state. These kinds of incentives are used in encouraging an individual’s behavior towards investment and parenting. The 2016 earned income tax credit table is one of these incentives but before a person can qualify under this law they must first meet the requirements and file for it; this is not an automatic claim.

Age of the Claimant

Single parents that are below 19 years of age and are living in extended family situations can be registered under a qualifying ‘child’ by their older relatives. Meanwhile single parents younger than 24 who are also full-time students under a college or university and live in extended family situations can also claim; take note that they must have accumulated an entire semester or equivalent to it before they can be considered as full-time college students.

The younger single parent cannot claim any earned income tax credit, the said law also does not apply to any married couple if both or one of the couples are under 19 years of age. In situations where a sibling is claiming any one of their siblings as a qualifying child should be older, this is allowed and is considered typical. In the case of a filing married couple who want joint return, one of them should be older than the other. There are certain exceptions to these ‘one of them must be older’ rule, like cases of a qualifying child that’s classified as ‘permanently and totally disabled’; must be stated by a physician and has been under the condition for at least one year.

Standard rules indicate that any qualifying ‘child’ must be under 19 years of age at the end of the taxable year. The age limit is generally extended for a qualifying ‘child’ who’s considered as a full-time student, they just have to be under 24 years of age at the end of the taxable year and the requirement is considered met. Even high school students that work in co-op jobs or are enrolled under vocational programs are classified as full-time students; the vocational programs and schools include technical, trade and mechanical schools.

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