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Earned Income Credit (EIC)
- AN OVERVIEW -
For more information, click on the questions below:
The Earned Income Credit (EIC), also known as the Earned Income Tax Credit (EITC), is an important anti-poverty and work incentive program that is run by the federal government. The EIC helps individuals and families who earn low to moderate wages, especially working families with children.
If you qualify for the EIC, the tax credit will lower or eliminate any taxes you owe. If you are not required to pay any taxes, or if the credit is more than the taxes you owe, you will get a cash payment ("refund") from the Internal Revenue Service (IRS) after you file your tax return.
Massachusetts has its own state Earned Income Credit for workers who live in the state and who get the federal EIC. Workers who qualify for and receive the federal EIC can claim an additional 15% of the federal EIC amount on their state income tax return.
To qualify for the EIC, you must have worked during the tax year, have income below a certain level, file a federal tax return, and meet other eligibility requirements. For tax year 2009, your earned income and adjusted gross income must be less than the following:
Number of
qualifying children |
Single /
Head of household |
Married filing jointly |
| none |
$13,440 |
$18,440 |
| one |
$35,463 |
$40,463 |
| two |
$40,295 |
$45,295 |
| three or more |
$43,279 |
$48,279 |
The IRS web site has a complete explanation of Earned Income Tax Credit rules.
You can use the Internal Revenue Service's Earned Income Tax Credit Assistant to help you find out if you are eligible for the EIC and to estimate the amount of your credit.
The amount of EIC you can get depends on your income, your marital status, and how many qualifying children you have. Workers with one or more children can get a larger EIC than workers who do not have children. The Massachusetts EIC is an additional 15% of the federal EIC amount.
For tax year 2009, the maximum federal and Massachusetts EIC amounts are:
Number of
qualifying children |
Maximum
federal EIC |
Maximum MA
state EIC |
| none |
$ 457 |
$68.55 |
| one |
$3043 |
$456.45 |
| two |
$5028 |
$754.20 |
| three or more |
$5657 |
$848.55 |
The EIC amount that most workers can get is lower than these maximum figures.
To claim the federal EIC, you must file a federal income tax return with the Internal Revenue Service (IRS), usually by April 15th, whether or not you owe any taxes. If you have one or more qualifying children, you must include Schedule EIC. You can get the forms you need from:
Volunteer Income Tax Assistance (VITA) sites offer free help to tax filers.
To claim the Massachusetts EIC, you must file a state income tax return with the Massachusetts Department of Revenue. For state tax forms and instructions, see DOR Forms and Publications.
The Advance EIC is a way for you to increase your take-home pay during the year rather than getting your Earned Income Credit in one payment at tax time. You may be eligible for the Advance EIC if you have at least one qualifying child and you expect to claim the EIC on your tax return next year.
The Massachusetts Earned Income Credit is a state-level tax credit that lowers the Massachusetts state taxes of low-income working families. Massachusetts residents who are eligible for the federal Earned Income Credit are automatically eligible for the Massachusetts EIC on their state tax returns.
Find out how to get extra time to file your tax return, what happens if you make a mistake when you claim the EIC, and answers to other frequently asked questions about the Earned Income Credit.
Links to other web sites with additional information about the Earned Income Credit.
Earned Income Credit section last updated on 4/29/10
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