The Internal Revenue Service (IRS) has released updated 2013 Earned Income Tax Credit (EITC) amounts and a new Notice 797.
Individuals will now qualify for EITC on their 2012 tax return if they:
♦ earned under $45,060 and have three or more qualifying children ($50,270 if married filing jointly)
♦ earned under $41,952 and have two qualifying children ($47,162 if married filing jointly)
♦ earned under $36,920 and have one qualifying child ($42,130 if married filing jointly)
♦ earned under $13,980 and have no qualifying children ($19,190 if married and filing jointly).
Information regarding advanced payments of EIC in 2012 was removed from the notice. After 2010, individuals can no longer get advanced payments of the credit in their paychecks during the year. The qualifying child tests for EITC have stayed the same. There are four tests a child must meet in order to be considered a qualifying child under EITC: relationship, age, joint return and residency.