Earned income tax credit 2016 table pdf

The amount of EITC benefit depends on a recipient’s income and number of children. For a person or couple earned income tax credit 2016 table pdf claim one or more persons as their qualifying child, requirements such as relationship, age, and shared residency must be met. 1040EZ, 1040A, or 1040 can be used to claim EITC without qualifying children.


To claim the credit with qualifying children, forms 1040A or 1040 must be used along with Schedule EITC attached. EIC phases in slowly, has a medium-length plateau, and then phases out more slowly than it was phased in. These amounts are indexed annually for inflation. The earned income tax credit has been part of political debates in the United States regarding whether raising the minimum wage or increasing EITC is a better idea.

Earned Income Tax Credit program should be expanded. Today, the EITC is one of the largest anti-poverty tools in the United States.

Most income measures, including the poverty rate, do not account for the credit. A qualifying child can also be in the process of being adopted provided he or she has been lawfully placed. Foster children also count provided either the child has been officially placed or is a member of one’s extended family. A younger single parent cannot claim EIC if he or she is also claimable as a qualifying child of their parent or another older relative, which can happen in some extended family situations.

This restriction does not apply to a married couple who is claiming EIC with a child, even if one or both spouses are under the age of 19. There is no support test for EIC.

There is a six-month plus one day shared residency test. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. EIC for families with three or more children.

5,000 above the amount for unmarried filers, thereby giving MFJ filers a longer plateau. The combined plateau and phase-out range for married filing jointly is still not double that for single filers, and thus there still is a marriage penalty, just less than there used to be. Canada, New Zealand, Belgium, Finland, Sweden, France and the Netherlands.

In some cases, these credits are small. Others are larger than the U. As of early 2012, 26 states have enacted state EITCs: Colorado, Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, Vermont, Virginia, and Wisconsin. Some of these state EICs are refundable, and some are not.

In addition, a few small local EICs have been enacted in San Francisco, New York City, and Montgomery County, Maryland. Wages, salaries, tips, commissions, and other taxable employee pay. Gross income received as a statutory employee. Nontaxable combat pay received by a member of the U.

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