What is the Earned Income Tax Credit (EITC) and How Can You Claim?

The Earned Income Tax Credit (EITC) is a tax break designed to help workers and families with low-to-moderate incomes keep more of their money.

If you have a child, you may be eligible for a larger credit, but the child must meet specific requirements set by the IRS.

To claim a child for the EITC, they must have a valid Social Security number and can only be claimed by one person per tax year. Additionally, the child must meet the following four requirements.

1. Relationship

The child must be related to you in one of the following ways:

Immediate Family: Your son, daughter, stepson, stepdaughter, or a legally adopted child.
Siblings: Your brother, sister, half-brother, half-sister, stepbrother, or stepsister.
Extended Family: Your grandchild, niece, or nephew.
Foster Children: A child placed in your care by a government agency, a court order, or an authorized tax-exempt organization.

2. Age

To qualify, the child must meet one of these three age criteria:

Under 19: They must be under the age of 19 at the end of the year and younger than you (or your spouse).
Students: If they are a full-time student, they can be under age 24, as long as they are younger than you (or your spouse).
Disability: If the child is permanently and totally disabled at any time during the year, they qualify at any age, regardless of whether they are younger than you.

3. Residency

The child must live with you in the United States for more than half of the year (at least six months and one day).

Where counts: This includes all 50 states, the District of Columbia, and U.S. military bases. (Note: U.S. territories like Puerto Rico or Guam do not count for this specific residence rule).
Type of Home: You do not need a traditional house. For example, if you and your child lived in a homeless shelter for more than half the year, you still meet this requirement.

4. Joint Return

The child cannot be claimed by more than one person. If two people (such as divorced parents) both try to claim the same child, the IRS has "tie-breaker" rules to decide who gets the credit.

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