The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

Last year, more than 21 million taxpayers collected more than $36 billion in EITC payments. If you want to claim the EITC you should make sure you are eligible for the credit before sending in your tax return. Don't guess. Know if you are qualified. To learn if you qualify, you may choose one of the tools or options listed below to assist you in determining your eligibility for the credit.

EITC Assistant

Will you qualify for the EITC this year? Tired of guessing? Don't guess. Know. There's a lot to know about qualifying for EITC, but the most important thing to know is you can get help figuring it all out.  The EITC Assistant is a convenient way for you to find out if you are likely to qualify for the EITC tax credit by answering questions online, about yourself, your children, your living situation, and your income. You will see the results of the eligibility check right away, on your computer screen. The Assistant can be used by individuals, tax practitioners, employers, community and public service organizations, and  IRS partners.  EITC is a refundable credit that helps families.  The EITC Assistant is:

• Easy to follow
• Simple to navigate
• Provides peace of mind

If in doubt, check it out using the EITC Assistant!

Additional Publications and Tools

• EITC Eligibility Checklist
• EITC Eligibility rules can be found in Publication 596, or Publication 596SP
• If you think you might be eligible for EITC or AETIC check out our Q&As;:

1. EITC Questions and Answers
2. Advance EITC Questions and Answers

• Ask your employer about advanced EITC and complete  2004 Form W-5, Earned Income Credit Advance Payment Certificate, and give it to your employer.

• EITC Information and Additional Resources for Individuals, Tax Preparers, and Partners

Free Help

• Take advantage of a free volunteer tax assistance program, such as the Volunteer Income Tax Assistance (VITA) Program, Tax Counseling for the Elderly (TCE), AARP’s Tax-Aide counseling program or the Military VITA Program for armed forces members and families.
• Take advantage of free assistance. The IRS offers recorded messages on about 150 tax topics through our toll-free TeleTax service at 1-800-829-4477. 
•  We also offer federal tax forms and publications at 1-800-TAX-FORM (1-800-829-3676), or order free copies by U.S. mail.   Some libraries, post offices, banks, grocery stores, copy centers and office supply stores carry the most widely requested forms and instructions. Libraries may also have reference sets of IRS publications.
• Telephone Assistance
• Every taxpayer has a right to have access to representation. Low Income Taxpayer Clinics provide:

1. low income taxpayer with representation in federal tax disputes for free or a nominal charge, and
2. tax education and outreach for taxpayers who speak English as a Second Language.

• If you have an ongoing issue with the IRS that has not been resolved through normal processes, or you have suffered, or are about to suffer a significant hardship as a result of the application of the tax laws, contact the Taxpayer Advocate Service.
• We want to remind military families that many of you may also qualify for EITC because supplemental payments and combat pay are exempt from the income calculations.

Paid Tax Professional

• Seek out a reputable professional who understands EITC rules and who will avoid common mistakes.
• Locate an Authorized e-file Provider

Outreach and Education

The IRS is broadening its outreach to EITC claimants in an effort to maximize participation and minimize errors on tax returns. We are taking several steps, including:

• Working with thousands of community-based organizations nationwide to reach low-income workers who may be unaware of the EITC availability;
• Helping set-up approximately 14,000 volunteer centers that offer free tax preparation for low-income and elderly individuals. Times and locations of these volunteer centers are publicized locally;
• Coordinating with mayors’ offices nationwide to help identify low-wage earners who may qualify for EITC;
• Providing additional EITC tools to tax practitioners who must perform due diligence when preparing tax returns.
• Providing additional EITC tools to organizations nationwide are partnering with IRS to make a difference in their communities

If you are eligible and claiming EITC we urge you to consider electronic filing especially through Free File which will offer free tax preparation and e-filing to millions of taxpayers. Free File will be operational in mid-January. E-filing, either through Free File or through a tax professional, will help reduce math errors that can delay a refund. Taxpayers who e-file and use direct deposit will receive their refunds in two weeks or less.