2019 Earned Income Tax Credit EITC

By | December 18, 2018

The 2019 earned income tax credit (EIC) has gone up slightly as compared to the 2018 EITC amount. Many Americans will be happy to see that the 2019 EITC is higher than before. As always, the earned income credit is a refundable tax credit, which means that if it reduces your taxes to zero, you may get a refund back from the IRS due to the EIC! Even though the government is shutdown, ETIC payments and tax refunds are still being processed by the IRS. Be sure to file your taxes as soon as possible to get these refunds.

Remember that these EITC amounts are for the 2019 tax year, this means you will file taxes in 2020. This webpage has information on the 2019 earned income credit table.

What is the Earned Income Tax Credit 2019 Amount?

The maximum Earned Income Tax Credit in 2019 for single and joint filers is $529, if the filer has no children. The maximum credit is $3,526 for one child, $5,828 for two children, and $6,557for three or more children. All these are relatively small increases from 2018. The Earned Income Tax Credit is a tax credit that is refundable, which means that it not only can be subtracted from taxes owed, but can be refunded to the taxpayer if taxes are not owed. The Earned Income Credit is automatically calculated in IRS form 1040, however, there are some alternatives if you’d like to play with the numbers.

Earned Income Tax Credit 2019 Table (2019 EIC Table)

The EITC is a tax benefit for working people who earn lower or moderate incomes. The credit offsets taxes, supplements very low wages, and encourages work.

Below is the 2019 Earned Income Credit Table for Single or Head of Household

Filing Status No Children One Child Two Children
Three or More Children
Single or Head of Household Income at Max Credit $6,920 $10,370 $14,570 $14,570
Maximum Credit $529 $3,526 $5,828 $6,557
Phaseout Begins $8,650 $19,030 $19,030 $19,030
Phaseout Ends (Credit Equals Zero) $15,570 $41,094 $46,703 $50,162

 

Below is the 2019 Earned Income Credit Table for Married Filing Jointly:

Filing Status No Children One Child Two Children
Three or More Children
Married Filing Jointly Income at Max Credit $6,920 $10,370 $14,570 $14,570
Maximum Credit $529 $3,526 $5,828 $6,557
Phaseout Begins $14,450 $24,820 $24,820 $24,820
Phaseout Ends (Credit Equals Zero) $21,370 $46,884 $52,493 $55,952

 

We computed the adjustments to these amounts for 2019 based on the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). The Tax Cuts and Jobs Act established this method for determining adjustments for the Earned Income Tax Credit and other tax provisions starting with tax year 2019.

The EITC maximum credit amounts for 2019 are:

  • $6,557 with three or more qualifying children
  • $5,828 with two qualifying children
  • $3,526 with one qualifying child
  • $529 with no qualifying children

To claim the EITC, workers with children must file either form 1040 or 1040A and submit the Schedule EIC. Workers without children can file any tax form, including Form 1040EZ, and do not need to complete the Schedule EIC.

When do you get the EITC in 2019?

You may claim the 2019 EITC when you file your tax return in 2020. This is one reason to file your tax return as soon as possible. The quicker you file in 2020, the faster you will receive the refundable EITC tax refund.

 

How do you qualify for the 2019 EITC?

There are three main eligibility requirements to claim the EITC. The first is that you work and earn income. This can be from wages, salary, tips, employer-based disability, self-employment income, military pay, or union strike benefits. The second requirement is that you don’t make over a certain amount of money, which you can check with the estimator above. The third requirement is to have social security numbers that permit work for you, your spouse, and any children claimed on your tax return.

 

What Child Qualifies for EITC?

You can get the Earned Income Credit (EIC in 2019) without children, the amount of the credit increases with each qualified child. Qualified children must meet each of the eligibility tests:

Relationship Test for EITC 2019:

  • Your son, daughter, adopted child, stepchild, foster child or a descendant of any of them such as your grandchild
  • Brother, sister, half brother, half sister, step brother, step sister or a descendant of any of them such as a niece or nephew

Age Test for EITC 2019:

  • At the end of the filing year, your child was younger than you (or your spouse if you file a joint return) and younger than 19
  • At the end of the filing year, your child was younger than you (or your spouse if you file a joint return) younger than 24 and a full-time student
  • At the end of the filing year, your child was any age and permanently and totally disabled

Residency Test:

Child must live with you (or your spouse if you file a joint return) in the United States for more than half of the year

Joint Return:

The child cannot file a joint return for the tax year unless the child and the child’s spouse did not have a separate filing requirement and filed the joint return only to claim a refund.

Tiebreaker Rules:

Note that only one person can claim a specific qualified child (i.e. in cases of divorce).

Do not forget that the child tax credit. The Child Tax Credit is worth up to $1,000 per qualifying child. The Additional Child Tax Credit Earnings Threshold is $3,000.