The Earned Income Credit (EITC) can be a game-changer for boosting your income, and understanding if the Earned Income Credit has changed is key to maximizing your benefits. At income-partners.net, we help you navigate these changes and find strategic partnerships to further enhance your financial well-being. Explore collaborative ventures, tax-saving strategies, and reliable financial assistance designed to boost your earnings and secure your financial future.
1. What Is the Earned Income Tax Credit (EITC)?
The Earned Income Tax Credit (EITC) is a refundable tax credit in the United States for low- to moderate-income working individuals and families. The EITC essentially supplements wages for eligible workers, helping them make ends meet. Eligibility depends on factors such as income, filing status, and the number of qualifying children. According to the IRS, the EITC is one of the most effective tools for reducing poverty in the U.S. So, what exactly is the Earned Income Tax Credit?
The Earned Income Tax Credit (EITC) is a refundable tax credit for low- to moderate-income working individuals and families. It reduces the amount of tax you owe and may give you a refund.
1.1 How Does the EITC Work?
The EITC works by providing a tax break to eligible individuals and families with earned income. The amount of the credit depends on your income, filing status, and the number of qualifying children you have. The IRS provides tables and tools to help you determine if you are eligible and how much credit you can claim.
1.1.1 Key Factors Determining EITC Eligibility
- Earned Income: This includes wages, salary, tips, and self-employment income.
- Adjusted Gross Income (AGI): Your AGI must be below certain limits, which vary by filing status and the number of qualifying children.
- Filing Status: Your filing status (e.g., single, married filing jointly) affects your eligibility and the amount of credit you can receive.
- Qualifying Children: Having qualifying children can significantly increase the amount of your EITC.
- Investment Income: Your investment income must be below a certain limit.
1.2 Why Is the EITC Important?
The EITC is important because it provides significant financial relief to low- and moderate-income workers. It can help families afford basic necessities, reduce poverty, and encourage workforce participation. According to research from the University of Texas at Austin’s McCombs School of Business, in July 2025, the EITC has been shown to improve health outcomes and educational attainment for children in recipient families.
1.2.1 Benefits of the EITC
- Poverty Reduction: The EITC lifts millions of people out of poverty each year.
- Financial Stability: It helps families afford essential expenses such as housing, food, and healthcare.
- Workforce Participation: By supplementing wages, the EITC encourages people to work.
- Economic Stimulus: The EITC injects money into local economies as recipients spend their refunds.
1.3 Where Can You Find More Information About The EITC?
For comprehensive details and to check your eligibility, visit income-partners.net. We offer resources, strategies for financial partnerships, and information to maximize your income potential. Additionally, the IRS website provides detailed information and tools to help you understand the EITC.
2. How Has the Earned Income Credit Changed Over the Years?
The Earned Income Credit (EITC) has seen numerous adjustments since its inception in 1975 to better serve low- to moderate-income working individuals and families. These changes often involve income thresholds, credit amounts, and eligibility criteria. Keeping abreast of these updates is crucial to ensure you’re maximizing potential benefits. So, how has the Earned Income Credit changed over the years?
The Earned Income Credit has changed significantly over the years, with adjustments to income thresholds, credit amounts, and eligibility criteria. These changes are often made to reflect economic conditions and to better target the credit to those who need it most.
2.1 Key Changes in Recent Years
2.1.1 American Rescue Plan Act (ARPA) of 2021
The American Rescue Plan Act of 2021 brought significant changes to the EITC, particularly for those without qualifying children. The maximum credit amount for this group was substantially increased, and the age requirements were expanded to include younger and older workers.
- Increased Maximum Credit: The maximum credit for childless workers was nearly tripled.
- Expanded Age Range: The age range for eligible childless workers was expanded to include those aged 19-24 (with some exceptions for students) and those aged 65 and older.
- Special Rule for Married Filing Separately: Taxpayers claiming the EITC who file married filing separately had to meet specific eligibility requirements under ARPA.
2.1.2 Inflation Adjustments
Each year, the IRS adjusts the income thresholds and credit amounts for inflation. These adjustments help ensure that the EITC maintains its value and continues to provide meaningful support to low- and moderate-income workers.
- Annual Updates: The IRS releases updated EITC tables each year, reflecting changes in AGI limits, investment income limits, and maximum credit amounts.
- Impact on Eligibility: Inflation adjustments can affect whether you are eligible for the EITC and the amount of credit you can receive.
2.1.3 Legislative Changes
Congress occasionally passes legislation that makes more substantial changes to the EITC. These changes can include modifications to eligibility criteria, credit formulas, and other aspects of the credit.
- Tax Cuts and Jobs Act of 2017: While this act primarily focused on other areas of the tax code, it did make some minor adjustments to the EITC.
- Future Legislation: It’s essential to stay informed about any potential future legislative changes that could affect the EITC.
2.2 Historical Overview of EITC Changes
To fully appreciate the current state of the EITC, it’s helpful to understand its historical evolution. Since its inception, the EITC has been modified numerous times to adapt to changing economic conditions and policy priorities.
2.2.1 Early Years (1975-1990s)
- 1975: The EITC was initially introduced as a temporary measure to offset the impact of rising inflation and energy costs.
- 1986: The Tax Reform Act of 1986 expanded the EITC and indexed it to inflation.
- 1990s: Several legislative changes further increased the EITC and expanded eligibility.
2.2.2 2000s to Present
- Economic Growth and Tax Relief Reconciliation Act of 2001: This act included provisions that increased the EITC for married couples.
- American Recovery and Reinvestment Act of 2009: This act temporarily increased the EITC and expanded eligibility.
- Ongoing Adjustments: Since then, the EITC has been subject to annual inflation adjustments and occasional legislative changes.
2.3 Staying Informed About EITC Changes
Given the frequent changes to the EITC, it’s crucial to stay informed. Here are some resources to help you stay up-to-date:
- IRS Website: The IRS website is the primary source of information about the EITC, including updated tables, publications, and FAQs.
- Tax Professionals: Consulting with a qualified tax professional can help you understand how EITC changes affect your specific situation.
- Income-Partners.net: We provide resources, insights, and partnership opportunities to help you maximize your financial well-being.
- Newsletters and Alerts: Subscribe to newsletters and alerts from reputable sources to receive timely updates on tax law changes.
2.4 How Can Income-Partners.net Help You?
At income-partners.net, we understand the complexities of tax credits and financial planning. We offer resources and partnership opportunities designed to help you maximize your income potential.
2.4.1 Partnership Opportunities
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2.4.2 Expert Resources
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By staying informed about EITC changes and leveraging the resources available at income-partners.net, you can ensure that you’re maximizing your benefits and achieving your financial goals.
3. Who Is Eligible For the Earned Income Tax Credit?
Determining eligibility for the Earned Income Tax Credit (EITC) involves several factors related to your income, filing status, and family situation. Understanding these requirements is key to claiming the credit. Who exactly is eligible for the Earned Income Tax Credit?
Eligibility for the Earned Income Tax Credit depends on factors such as your earned income, adjusted gross income (AGI), filing status, and the number of qualifying children you have.
3.1 Key Eligibility Requirements
3.1.1 Earned Income
To be eligible for the EITC, you must have earned income. This includes:
- Wages, Salary, and Tips: Income received from working for an employer.
- Self-Employment Income: Income earned from running your own business or farm.
- Other Earned Income: Certain disability benefits received before retirement age, union strike benefits, and nontaxable combat pay.
Note: Income from interest, dividends, pensions, Social Security, unemployment benefits, alimony, and child support does not qualify as earned income.
3.1.2 Adjusted Gross Income (AGI)
Your AGI must be below certain limits, which vary depending on your filing status and the number of qualifying children you have. The IRS updates these limits annually to account for inflation.
- AGI Limits: Refer to the EITC tables provided by the IRS to determine the AGI limits for your specific situation.
3.1.3 Filing Status
Your filing status also affects your eligibility for the EITC. You can file as single, head of household, married filing jointly, or qualifying widow(er). If you are married filing separately, you may still be eligible under certain conditions, particularly due to changes introduced by the American Rescue Plan Act (ARPA) of 2021.
- Married Filing Separately: Under ARPA, certain taxpayers who file as married filing separately may be eligible if they meet specific requirements.
3.1.4 Qualifying Children
Having qualifying children can significantly increase the amount of your EITC. A qualifying child must meet certain requirements related to age, residency, and relationship to you.
- Age Test: The child must be under age 19, or under age 24 if a full-time student, or any age if permanently and totally disabled.
- Residency Test: The child must live with you in the United States for more than half the year.
- Relationship Test: The child must be your son, daughter, stepchild, adopted child, sibling, step-sibling, half-sibling, or a descendant of any of these (e.g., grandchild, niece, nephew).
3.1.5 Investment Income
Your investment income must be below a certain limit to qualify for the EITC. This limit is updated annually by the IRS.
- Investment Income Limit: Refer to the EITC tables provided by the IRS to determine the investment income limit for the tax year.
3.1.6 Other Requirements
- U.S. Citizen or Resident Alien: You must be a U.S. citizen or resident alien for the entire tax year.
- Valid Social Security Number: You must have a valid Social Security number for yourself, your spouse (if filing jointly), and any qualifying children.
- Not a Qualifying Child of Another Person: You cannot be claimed as a qualifying child on someone else’s return.
3.2 EITC Eligibility Tables
The IRS provides EITC tables each year that summarize the AGI limits, investment income limits, and maximum credit amounts based on filing status and the number of qualifying children.
Example: Tax Year 2023
| Children or Relatives Claimed | Filing as Single, Head of Household, Married Filing Separately, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $17,640 | $24,210 |
| One | $46,560 | $53,120 |
| Two | $52,918 | $59,478 |
| Three | $56,838 | $63,398 |
Investment Income Limit: $11,000 or less
Maximum Credit Amounts:
- No qualifying children: $600
- 1 qualifying child: $3,995
- 2 qualifying children: $6,604
- 3 or more qualifying children: $7,430
3.3 Special Rules and Considerations
3.3.1 Members of the Military
Members of the military may be eligible for the EITC if they meet the general eligibility requirements. Nontaxable combat pay can be included in earned income for the purposes of calculating the EITC.
3.3.2 Clergy
Members of the clergy may be eligible for the EITC if they meet the general eligibility requirements. Income from ministerial services is considered earned income for the purposes of calculating the EITC.
3.3.3 Self-Employed Individuals
Self-employed individuals are also eligible for the EITC if they meet the general eligibility requirements. This includes freelancers, independent contractors, and small business owners.
3.4 How Can Income-Partners.net Help You?
At income-partners.net, we provide resources and partnership opportunities to help you maximize your income and financial stability.
3.4.1 Financial Planning Resources
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4. How Do You Claim the Earned Income Tax Credit?
Claiming the Earned Income Tax Credit (EITC) involves completing specific tax forms and providing accurate information about your income, filing status, and qualifying children. Understanding the process ensures you receive the credit you’re entitled to. How do you actually claim the Earned Income Tax Credit?
Claiming the Earned Income Tax Credit involves completing specific tax forms, such as Form 1040, and providing accurate information about your income, filing status, and qualifying children.
4.1 Steps to Claiming the EITC
4.1.1 Determine Your Eligibility
Before you begin the process of claiming the EITC, it’s essential to determine whether you meet the eligibility requirements. Review the criteria outlined in the previous section, including income limits, filing status, and qualifying child requirements.
- Use the EITC Assistant: The IRS provides an online tool called the EITC Assistant, which can help you determine if you are eligible for the credit.
4.1.2 Gather Necessary Documents
Collect all the necessary documents to accurately complete your tax return. These documents may include:
- Form W-2: This form reports your wages, salary, and tips from your employer.
- Form 1099-NEC: This form reports income you received as an independent contractor or self-employed individual.
- Social Security Numbers: You will need valid Social Security numbers for yourself, your spouse (if filing jointly), and any qualifying children.
- Other Income Records: Gather records of any other income you received, such as union strike benefits or disability payments.
4.1.3 Complete Form 1040
The EITC is claimed on Form 1040, U.S. Individual Income Tax Return. You will need to complete the relevant sections of the form and attach Schedule EIC if you have qualifying children.
- Accurate Information: Ensure that you provide accurate information about your income, filing status, and dependents.
- Follow Instructions: Carefully follow the instructions provided by the IRS to avoid errors or delays in processing your return.
4.1.4 Complete Schedule EIC (if applicable)
If you have qualifying children, you will need to complete Schedule EIC, Earned Income Credit. This form requires you to provide information about each qualifying child, including their name, Social Security number, and relationship to you.
- Qualifying Child Information: Provide accurate and complete information about each qualifying child to ensure you receive the correct amount of credit.
- Residency Test: Verify that each qualifying child meets the residency test, meaning they lived with you in the United States for more than half the year.
4.1.5 File Your Tax Return
Once you have completed Form 1040 and Schedule EIC (if applicable), you can file your tax return with the IRS. You can file your return electronically or by mail.
- E-Filing: Filing your return electronically is the fastest and most convenient way to file. You can use tax software or work with a qualified tax professional to e-file your return.
- Mail: If you prefer to file by mail, you can download the necessary forms from the IRS website and mail them to the appropriate address.
4.2 Common Mistakes to Avoid
When claiming the EITC, it’s essential to avoid common mistakes that could result in delays or denial of the credit.
- Incorrect Social Security Numbers: Double-check that you have provided accurate Social Security numbers for yourself, your spouse (if filing jointly), and any qualifying children.
- Inaccurate Income Information: Ensure that you have accurately reported all sources of income, including wages, salary, tips, and self-employment income.
- Failure to Meet Qualifying Child Requirements: Verify that each qualifying child meets the age, residency, and relationship tests.
- Incorrect Filing Status: Choose the correct filing status based on your marital status and family situation.
- Missing Schedule EIC: If you have qualifying children, be sure to complete and attach Schedule EIC to your tax return.
4.3 Resources for Claiming the EITC
The IRS provides a variety of resources to help you claim the EITC accurately and efficiently.
- IRS Website: The IRS website offers detailed information about the EITC, including updated tables, publications, and FAQs.
- EITC Assistant: Use the EITC Assistant to determine if you are eligible for the credit and estimate the amount of credit you can claim.
- Tax Software: Consider using tax software to help you complete your tax return and claim the EITC. Many tax software programs offer step-by-step guidance and error-checking features.
- Tax Professionals: Consulting with a qualified tax professional can provide personalized assistance and ensure that you are claiming the EITC correctly.
- Volunteer Income Tax Assistance (VITA): VITA is a free tax preparation program that provides assistance to low- and moderate-income individuals and families.
4.4 How Can Income-Partners.net Help You?
At income-partners.net, we provide resources and partnership opportunities to help you maximize your income and financial stability.
4.4.1 Financial Planning Resources
Access resources and guidance on financial planning, tax credits, and income optimization. Our team is dedicated to helping you navigate the complexities of the financial landscape and achieve your goals.
4.4.2 Strategic Partnerships
Explore strategic partnerships that can boost your income and financial stability. Whether you’re looking for investment opportunities, business collaborations, or other ventures, income-partners.net can help you find the right partners.
By following these steps and avoiding common mistakes, you can claim the Earned Income Tax Credit accurately and efficiently. Leveraging the resources available at income-partners.net can further enhance your financial planning and income optimization strategies.
5. What Are The Income Limits For The Earned Income Tax Credit?
Understanding the income limits for the Earned Income Tax Credit (EITC) is essential because they determine whether you qualify for the credit. These limits vary depending on your filing status and the number of qualifying children you have. What exactly are the income limits for the Earned Income Tax Credit?
The income limits for the Earned Income Tax Credit vary depending on your filing status and the number of qualifying children you have, and they are updated annually by the IRS to account for inflation.
5.1 Understanding AGI and Earned Income
Before delving into the specific income limits, it’s important to understand the two types of income that are relevant for EITC eligibility:
- Adjusted Gross Income (AGI): AGI is your gross income (total income) minus certain deductions, such as contributions to traditional IRAs, student loan interest payments, and alimony payments.
- Earned Income: Earned income includes wages, salary, tips, self-employment income, and certain disability benefits received before retirement age.
Both your AGI and earned income must be below the specified limits to qualify for the EITC.
5.2 Income Limits for Tax Year 2024
The IRS provides EITC tables each year that outline the income limits based on filing status and the number of qualifying children. Here are the income limits for the tax year 2024:
| Children or Relatives Claimed | Filing as Single, Head of Household, Married Filing Separately, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $18,591 | $25,511 |
| One | $49,084 | $56,004 |
| Two | $55,768 | $62,688 |
| Three | $59,899 | $66,819 |
5.3 Income Limits for Previous Tax Years
To provide a broader perspective, here are the income limits for the EITC for the past few tax years:
5.3.1 Tax Year 2023
| Children or Relatives Claimed | Filing as Single, Head of Household, Married Filing Separately, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $17,640 | $24,210 |
| One | $46,560 | $53,120 |
| Two | $52,918 | $59,478 |
| Three | $56,838 | $63,398 |
5.3.2 Tax Year 2022
| Children or Relatives Claimed | Filing as Single, Head of Household, Married Filing Separately, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $16,480 | $22,610 |
| One | $43,492 | $49,622 |
| Two | $49,399 | $55,529 |
| Three | $53,057 | $59,187 |
5.3.3 Tax Year 2021
| Children or Relatives Claimed | Filing as Single, Head of Household, Married Filing Separately, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $21,430 | $27,380 |
| One | $42,158 | $48,108 |
| Two | $47,915 | $53,865 |
| Three | $51,464 | $57,414 |
5.4 Investment Income Limit
In addition to the AGI and earned income limits, there is also a limit on the amount of investment income you can have and still qualify for the EITC. For tax year 2024, the investment income limit is $11,600. Investment income includes:
- Taxable interest
- Dividends
- Capital gains
- Rental income
5.5 Impact of Income Limits on EITC Eligibility
The income limits for the EITC are crucial because they determine whether you are eligible for the credit and the amount of credit you can receive. If your income exceeds the limits for your filing status and number of qualifying children, you will not be eligible for the EITC.
5.6 Strategies for Managing Your Income
If you are close to the income limits for the EITC, there are several strategies you can use to manage your income and potentially qualify for the credit.
- Maximize Deductions: Take advantage of all available deductions to reduce your AGI. This may include deductions for contributions to traditional IRAs, student loan interest payments, and other eligible expenses.
- Defer Income: If possible, defer income to a later tax year to keep your income below the EITC limits. This may involve delaying the receipt of bonuses or other forms of income.
- Consult a Tax Professional: Work with a qualified tax professional to develop a tax plan that minimizes your tax liability and maximizes your eligibility for tax credits like the EITC.
5.7 How Can Income-Partners.net Help You?
At income-partners.net, we provide resources and partnership opportunities to help you maximize your income and financial stability.
5.7.1 Financial Planning Resources
Access resources and guidance on financial planning, tax credits, and income optimization. Our team is dedicated to helping you navigate the complexities of the financial landscape and achieve your goals.
5.7.2 Strategic Partnerships
Explore strategic partnerships that can boost your income and financial stability. Whether you’re looking for investment opportunities, business collaborations, or other ventures, income-partners.net can help you find the right partners.
By understanding the EITC income limits and leveraging the resources available at income-partners.net, you can ensure that you’re maximizing your benefits and achieving your financial goals.
6. What Is Considered Earned Income For The EITC?
Identifying what qualifies as earned income is essential for determining your eligibility for the Earned Income Tax Credit (EITC). The IRS has specific guidelines on what types of income count towards the EITC. What is specifically considered earned income for the EITC?
Earned income for the EITC includes wages, salary, tips, self-employment income, and certain disability benefits received before retirement age, while it excludes income from investments, pensions, and other non-work-related sources.
6.1 Types of Earned Income
According to the IRS, earned income includes the following:
- Wages, Salary, and Tips: This is the most common type of earned income and includes any compensation you receive from working for an employer.
- Self-Employment Income: If you own and operate a business or farm, the income you earn from self-employment is considered earned income. This includes income reported on Schedule C or Schedule F of Form 1040.
- Union Strike Benefits: Benefits you receive from a union during a strike are considered earned income.
- Certain Disability Benefits: Disability benefits you receive before you reach the minimum retirement age are considered earned income.
- Nontaxable Combat Pay: If you are a member of the military, your nontaxable combat pay is considered earned income.
6.2 Income That Does Not Qualify as Earned Income
It’s equally important to know what types of income do not qualify as earned income for the EITC. These include:
- Interest and Dividends: Income from investments, such as interest and dividends, is not considered earned income.
- Pensions and Annuities: Payments you receive from pensions and annuities are not considered earned income.
- Social Security Benefits: Social Security benefits, including retirement, disability, and survivor benefits, are not considered earned income.
- Unemployment Benefits: Payments you receive from unemployment insurance are not considered earned income.
- Alimony: Alimony payments are not considered earned income.
- Child Support: Child support payments are not considered earned income.
6.3 Special Considerations for Self-Employed Individuals
Self-employed individuals have some unique considerations when it comes to determining their earned income for the EITC.
- Net Earnings: Your earned income from self-employment is your net earnings, which is your gross income minus business expenses.
- Deductible Expenses: You can deduct ordinary and necessary business expenses to reduce your self-employment income. This can include expenses such as supplies, advertising, travel, and home office expenses.
- Self-Employment Tax: You must pay self-employment tax on your net earnings. This includes Social Security and Medicare taxes. You can deduct one-half of your self-employment tax from your gross income when calculating your AGI.
6.4 Impact of Earned Income on EITC Amount
The amount of earned income you have directly impacts the amount of EITC you can receive. The EITC is designed to provide the greatest benefit to those with low to moderate earned income. As your earned income increases, the amount of EITC you can receive also increases, up to a certain point. After that point, the amount of EITC you can receive gradually decreases as your income continues to increase.
6.5 Strategies for Maximizing Earned Income
If you are close to the income limits for the EITC, there are several strategies you can use to maximize your earned income and potentially qualify for the credit or receive a larger credit amount.
- Increase Work Hours: If possible, increase the number of hours you work to increase your earned income.
- Seek Higher-Paying Employment: Look for employment opportunities that offer higher wages or salaries.
- Start a Business: If you have entrepreneurial skills, consider starting a business to generate self-employment income.
- Take on Freelance Work: Supplement your income with freelance work or side gigs.
6.6 How Can Income-Partners.net Help You?
At income-partners.net, we provide resources and partnership opportunities to help you maximize your income and financial stability.
6.6.1 Financial Planning Resources
Access resources and guidance on financial planning, tax credits, and income optimization. Our team is dedicated to helping you navigate the complexities of the financial landscape and achieve your goals.
6.6.2 Strategic Partnerships
Explore strategic partnerships that can boost your income and financial stability. Whether you’re looking for investment opportunities, business collaborations, or other ventures, income-partners.net can help you find the right partners.
By understanding what is considered earned income for the EITC and leveraging the resources available at income-partners.net, you can ensure that you’re maximizing your benefits and achieving your financial goals.
7. What Are Qualifying Child Rules For The Earned Income Tax Credit?
Navigating the qualifying child rules is essential for maximizing your Earned Income Tax Credit (EITC), as having a qualifying child can significantly increase the amount of credit you receive. The IRS has specific criteria that a child must meet to be considered a qualifying child for the EITC. What are the specific rules for a child to qualify for the Earned Income Tax Credit?
To be a qualifying child for the Earned Income Tax Credit, a child must meet specific age, residency, and relationship tests, as well as not be claimed as a dependent by another taxpayer.
7.1 Key Requirements for a Qualifying Child
To be considered a qualifying child for the EITC, a child must meet the following requirements:
- Age Test: The child must be under age 19 at the end of the tax year, or under age 24 if a full-time student, or any age if permanently and totally disabled.
- Residency Test: The child must live with you in the United States for more than half the tax year. There are some exceptions to this rule, such as for temporary absences due to illness, education, or military service.
- Relationship Test: The child must be your son, daughter, stepchild, adopted child, sibling, step-sibling, half-sibling, or a descendant of any of these (e.g., grandchild, niece, nephew).
- Dependent Test: The child must not have provided more than half of their own financial support during the tax year.
- Joint Return Test: The child cannot file a joint tax return with their spouse, unless they are filing solely to claim a refund of withheld taxes.
- Citizenship Test: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
7.2 Age Test Details
The age test is one of the most critical requirements for a qualifying child. Here are some additional details to keep in mind:
- Under Age 19: If the child is under age 19 at the end of the tax year, they meet the age test.
- Under Age 24 and a Student: If the child is under age 24 and a full-time student for at least five months of the tax year, they meet the age test.
- Any Age and Permanently and Totally Disabled: If the child is permanently and totally disabled at any time during the tax year, they meet the age test.
7.3 Residency Test Details
The residency test requires the child to live with you in the United States for more than half the tax year. Here are some additional details to keep in mind:
- United States Definition: The United States includes the 50 states and the District of Columbia.
- Temporary Absences: Temporary absences due to illness, education, or military service are generally not counted as time away from home.
- Custody Agreements: If you are divorced or separated, special rules may apply to determine which parent can claim the child as a qualifying child.
7.4 Relationship Test Details
The relationship test requires the child to be your son, daughter, stepchild, adopted child, sibling
