How Much Is the Earned Income Credit for 2024 Calculator?

The Earned Income Credit (EITC) for 2024 can significantly boost your income if you qualify, and understanding how much you can receive is crucial for financial planning, and income-partners.net is here to guide you. This comprehensive guide will explore the EITC, eligibility requirements, and how to estimate your potential credit, empowering you to maximize your tax benefits and improve your financial well-being through tax credits and income enhancement strategies.

1. What is the Earned Income Credit (EITC)?

The Earned Income Credit (EITC) is a refundable tax credit in the United States for low- to moderate-income working individuals and families. According to the Internal Revenue Service (IRS), the EITC aims to supplement the income of those who work and earn below a certain income threshold, providing substantial financial relief. This credit is designed to incentivize work and reduce poverty, supporting millions of Americans each year.

1.1. Key Features of the EITC

Refundable Credit: The EITC is a refundable tax credit, meaning that if the amount of the credit exceeds the amount of taxes you owe, you will receive the difference as a refund. This makes it particularly beneficial for low-income individuals and families who may not have significant tax liabilities.
Incentive to Work: The EITC encourages workforce participation by rewarding those who are employed. It provides a financial incentive for individuals to seek and maintain employment, thereby fostering economic independence.
Poverty Reduction: By providing additional income to low- to moderate-income households, the EITC helps reduce poverty rates and improve the overall financial stability of families.
Annual Adjustments: The income thresholds and credit amounts for the EITC are adjusted annually to account for inflation, ensuring that the credit remains effective in supporting eligible taxpayers.

1.2. Historical Context and Evolution of the EITC

The EITC was established in 1975 with the primary goal of offsetting the burden of Social Security taxes for low-income workers. Over the years, the credit has been expanded and modified to better target assistance to those who need it most.

Early Years (1975-1980s)

Initially, the EITC was a relatively modest credit, designed to provide a small boost to the incomes of working families. However, policymakers soon recognized its potential as a tool for poverty reduction and workforce development.

Expansion in the 1990s

The EITC underwent significant expansion in the 1990s, with increases in both the income thresholds and credit amounts. These changes were aimed at making the credit more accessible and beneficial to a larger number of low-income workers.

Continued Adjustments and Refinements

In subsequent years, the EITC has been further refined through various legislative changes. These adjustments have focused on simplifying the rules for claiming the credit, reducing errors, and ensuring that the EITC remains an effective tool for supporting working families.

1.3. Why the EITC Matters

The EITC is a critical component of the social safety net in the United States. It provides crucial financial assistance to millions of low- to moderate-income workers and families, helping them meet their basic needs and improve their overall quality of life.

Impact on Families

The EITC can have a transformative impact on families by providing additional resources for essential expenses such as food, housing, and healthcare. It can also enable families to invest in their children’s education and future opportunities.

Economic Benefits

In addition to its direct benefits to individual households, the EITC also has broader economic impacts. By boosting the incomes of low-income workers, the EITC can stimulate local economies and support job creation.

Workforce Participation

The EITC encourages workforce participation by rewarding those who are employed. It provides a financial incentive for individuals to seek and maintain employment, thereby fostering economic independence.

1.4. EITC and Partnering Opportunities

Navigating the complexities of tax credits like the EITC can be challenging. This is where strategic partnering opportunities come into play. Websites like income-partners.net offer resources and connections that can help individuals and businesses maximize their eligibility for the EITC.

How income-partners.net Can Help

income-partners.net provides a platform for connecting with experts who can offer guidance on tax planning and credit optimization. By leveraging these partnerships, you can ensure that you are taking full advantage of the EITC and other available tax benefits.

Benefits of Partnering

Expert Guidance: Access to tax professionals who can provide personalized advice and assistance.
Resource Optimization: Strategies for maximizing your eligibility for the EITC.
Financial Planning: Support for developing a comprehensive financial plan that incorporates tax credits and other income-enhancing strategies.

2. Who is Eligible for the EITC in 2024?

To qualify for the Earned Income Tax Credit (EITC) in 2024, you must meet several specific eligibility requirements set by the IRS. These requirements are designed to ensure that the credit benefits those who need it most, focusing on income levels, filing status, and other factors. Here’s a detailed breakdown of the eligibility criteria:

2.1. Basic Eligibility Requirements

Earned Income: You must have earned income from working for someone else or running your own business. Earned income includes wages, salaries, tips, and net earnings from self-employment.
Adjusted Gross Income (AGI) Limits: Your AGI must be below certain thresholds, which vary depending on your filing status and the number of qualifying children you have.
Filing Status: You must file as single, head of household, qualifying widow(er), or married filing jointly. You cannot claim the EITC if you are filing as married filing separately.
Residency: You must be a U.S. citizen or a resident alien for the entire tax year.
Social Security Number (SSN): You and any qualifying children listed on your tax return must have valid SSNs.
Investment Income: Your investment income must be $11,600 or less for the 2024 tax year.
Age Requirements: If you do not have any qualifying children, you must be at least age 25 but under age 65.

2.2. Detailed Income Limits for 2024

The income limits for the EITC vary based on your filing status and the number of qualifying children you have. Here are the specific AGI thresholds for the 2024 tax year:

Children Claimed	Filing Status (Single, Head of Household, Married Filing Separately, Widowed)	Filing Status (Married Filing Jointly)
Zero	$18,591	$25,511
One	$49,084	$56,004
Two	$55,768	$62,688
Three	$59,899	$66,819

2.3. Qualifying Child Requirements

If you are claiming the EITC with a qualifying child, the child must meet certain requirements:

Relationship: The child must be your son, daughter, stepchild, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these (e.g., grandchild, niece, nephew).
Age: The child must be under age 19 at the end of the year, or under age 24 if a full-time student. There is no age limit if the child is permanently and totally disabled.
Residency: The child must live with you in the United States for more than half the tax year.
Dependent: You must claim the child as a dependent on your tax return, or the child must meet the requirements to be claimed as your dependent.
Married Child: If the child is married, they must not file a joint return with their spouse, unless the only reason for filing is to claim a refund of withheld taxes or estimated taxes paid.

2.4. Special Rules and Considerations

Self-Employment Income: If you are self-employed, you must report your income and expenses on Schedule C or Schedule F of Form 1040. You can deduct business expenses to reduce your net earnings from self-employment.
Military Personnel: Special rules apply to military personnel who receive nontaxable combat pay. You can choose to include this pay in your earned income for the purposes of calculating the EITC.
Clergy Members: Members of the clergy are also eligible for the EITC if they meet the income and other requirements. They can include their housing allowance as part of their earned income.
Disability Benefits: Certain disability benefits may be considered earned income for the EITC, particularly if you received these benefits before reaching the minimum retirement age.
Investment Income Limit: The investment income limit for the 2024 tax year is $11,600. This includes interest, dividends, capital gains, and other types of investment income. If your investment income exceeds this limit, you are not eligible for the EITC.

2.5. How to Determine Your Eligibility

Determining whether you are eligible for the EITC can be complex, but the IRS provides several resources to help you:

EITC Assistant: The IRS offers an online EITC Assistant tool that can help you determine if you meet the basic eligibility requirements.
Tax Professionals: Consulting with a tax professional can provide personalized guidance and ensure that you are taking full advantage of the EITC.
IRS Publications: The IRS publishes detailed information about the EITC in Publication 596, Earned Income Credit.

2.6. Partnering for Success

Navigating the complexities of EITC eligibility can be daunting. This is where strategic partnerships, such as those facilitated by income-partners.net, can be invaluable.

The Role of income-partners.net

income-partners.net connects individuals with financial experts who can provide tailored advice on tax credits and income optimization. By partnering with professionals through income-partners.net, you can:

Gain Clarity: Understand the specific eligibility requirements and how they apply to your situation.
Optimize Your Claim: Ensure that you are maximizing your EITC claim by accurately reporting your income and expenses.
Stay Informed: Keep up-to-date with any changes to EITC rules and regulations.

3. How to Calculate the EITC for 2024

Calculating the Earned Income Tax Credit (EITC) for 2024 involves several steps, including determining your earned income, adjusted gross income (AGI), and the number of qualifying children you have. The IRS provides detailed guidelines and resources to help you accurately calculate your credit. Here’s a step-by-step guide to help you through the process:

3.1. Gather Necessary Information

Before you start calculating your EITC, gather all the necessary documents and information:

Social Security Numbers (SSNs): You will need your SSN and the SSNs for any qualifying children.
Income Statements: Collect all your income statements, such as Form W-2 (Wage and Tax Statement) for wages, salaries, and tips, and Form 1099-MISC or 1099-NEC for self-employment income.
Records of Self-Employment Income and Expenses: If you are self-employed, gather records of your income and expenses, such as receipts, invoices, and bank statements.
Other Relevant Documents: Collect any other documents that may be relevant to your income and deductions, such as records of alimony paid, student loan interest payments, and contributions to retirement accounts.

3.2. Determine Your Earned Income

Earned income includes wages, salaries, tips, and net earnings from self-employment. Here’s how to determine your earned income:

Wages, Salaries, and Tips: These are reported on Form W-2. Add up all the amounts in box 1 of your W-2 forms.
Self-Employment Income: If you are self-employed, you need to calculate your net earnings by subtracting your business expenses from your business income. Use Schedule C (Profit or Loss from Business) or Schedule F (Profit or Loss from Farming) to report your income and expenses.

3.3. Calculate Your Adjusted Gross Income (AGI)

Adjusted Gross Income (AGI) is your gross income minus certain deductions, such as contributions to traditional IRAs, student loan interest payments, and alimony paid. To calculate your AGI:

Start with Your Gross Income: This includes all your income from various sources, such as wages, salaries, tips, self-employment income, interest, dividends, and capital gains.
Subtract Deductions: Subtract any eligible deductions from your gross income. Common deductions include:
- Traditional IRA contributions
- Student loan interest payments
- Alimony paid (for divorce or separation agreements executed before 2019)
- Health savings account (HSA) contributions
The Result is Your AGI: The amount you get after subtracting these deductions from your gross income is your AGI.

3.4. Determine the Number of Qualifying Children

The amount of EITC you can claim depends on the number of qualifying children you have. A qualifying child must meet the following requirements:

Relationship: The child must be your son, daughter, stepchild, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these (e.g., grandchild, niece, nephew).
Age: The child must be under age 19 at the end of the year, or under age 24 if a full-time student. There is no age limit if the child is permanently and totally disabled.
Residency: The child must live with you in the United States for more than half the tax year.
Dependent: You must claim the child as a dependent on your tax return, or the child must meet the requirements to be claimed as your dependent.

3.5. Use the EITC Tables

The IRS provides EITC tables that you can use to look up the maximum amount of credit you may be eligible for based on your AGI, filing status, and the number of qualifying children.

Find the Correct Table: The IRS provides different EITC tables for different tax years. Make sure you are using the table for the 2024 tax year.
Locate Your AGI Range: Find the range in the table that includes your AGI.
Determine Your Credit Amount: Look across the row to find the column that corresponds to your filing status and the number of qualifying children. The amount listed in that cell is the maximum EITC you can claim.

3.6. Maximum EITC Amounts for 2024

Here are the maximum EITC amounts for the 2024 tax year, based on the number of qualifying children:

No Qualifying Children: $632
One Qualifying Child: $4,213
Two Qualifying Children: $6,960
Three or More Qualifying Children: $7,830

3.7. Example Calculation

Let’s say you are filing as head of household with two qualifying children. Your earned income is $45,000, and your AGI is $43,000. Using the EITC tables for 2024, you find that the maximum EITC you can claim is $6,960.

3.8. Use the IRS EITC Assistant

The IRS provides an online EITC Assistant tool that can help you determine your eligibility and estimate the amount of credit you can claim. To use the EITC Assistant:

Visit the IRS Website: Go to the IRS website and search for the EITC Assistant.
Answer the Questions: The tool will ask you a series of questions about your income, filing status, and qualifying children.
Get Your Results: Based on your answers, the tool will tell you whether you are eligible for the EITC and provide an estimate of the amount of credit you can claim.

3.9. Claiming the EITC on Your Tax Return

To claim the EITC, you must file a tax return, even if you are not otherwise required to file. Use Form 1040 (U.S. Individual Income Tax Return) to report your income, deductions, and credits.

Complete Form 1040: Fill out Form 1040 with your income, deductions, and other relevant information.
Claim the EITC: Use the EITC tables to determine the amount of credit you can claim and enter this amount on Form 1040.
Attach Schedule EIC (if applicable): If you have qualifying children, you may need to complete Schedule EIC (Earned Income Credit) and attach it to your tax return.
File Your Tax Return: File your tax return by the due date, which is typically April 15th. You can file electronically or by mail.

3.10. The Role of income-partners.net

income-partners.net can be a valuable resource in understanding and maximizing your EITC. Here’s how:

Expert Connections: The platform connects you with tax professionals who can guide you through the calculation process and ensure accuracy.
Up-to-Date Information: Stay informed about any changes to EITC regulations and guidelines.
Personalized Advice: Receive tailored advice based on your unique financial situation.

By leveraging the resources and connections available through income-partners.net, you can confidently navigate the EITC calculation process and optimize your tax benefits.

4. Maximizing Your EITC Claim

Maximizing your Earned Income Tax Credit (EITC) claim involves careful planning, accurate record-keeping, and a thorough understanding of the eligibility requirements. By taking the right steps, you can ensure that you receive the full amount of credit you are entitled to. Here are some strategies to help you maximize your EITC claim:

4.1. Ensure You Meet All Eligibility Requirements

Before you start calculating your EITC, make sure you meet all the eligibility requirements, as detailed by the IRS. This includes having earned income, meeting the AGI limits, and satisfying the requirements for qualifying children (if applicable).

Earned Income: Verify that you have earned income from wages, salaries, tips, or self-employment.
AGI Limits: Check that your AGI is below the specified thresholds for your filing status and the number of qualifying children.
Qualifying Child: If you are claiming the EITC with a qualifying child, ensure that the child meets the relationship, age, residency, and dependency requirements.

4.2. Accurately Report Your Income

Accurately reporting your income is crucial for maximizing your EITC claim. Make sure you include all sources of income, such as wages, salaries, tips, and self-employment income.

W-2 Forms: Report all the amounts from box 1 of your W-2 forms.
Self-Employment Income: If you are self-employed, use Schedule C or Schedule F to report your income and expenses accurately.
Other Income: Include any other income you received, such as interest, dividends, and capital gains.

4.3. Claim All Eligible Deductions

Claiming all eligible deductions can help reduce your AGI, which may increase the amount of EITC you can claim. Common deductions include:

Traditional IRA Contributions: Deduct contributions to a traditional IRA.
Student Loan Interest Payments: Deduct student loan interest payments.
Alimony Paid: Deduct alimony paid (for divorce or separation agreements executed before 2019).
Health Savings Account (HSA) Contributions: Deduct contributions to a health savings account.

4.4. Understand the Rules for Self-Employment Income

If you are self-employed, it is essential to understand the rules for reporting your income and expenses. You can deduct business expenses to reduce your net earnings from self-employment, which can increase your EITC.

Track Your Expenses: Keep detailed records of all your business expenses, such as supplies, equipment, and travel costs.
Use Schedule C or Schedule F: Report your income and expenses on Schedule C (Profit or Loss from Business) or Schedule F (Profit or Loss from Farming).
Consult with a Tax Professional: If you are unsure about how to report your self-employment income and expenses, consult with a tax professional.

4.5. Consider Nontaxable Combat Pay (if applicable)

Military personnel who receive nontaxable combat pay can choose to include this pay in their earned income for the purposes of calculating the EITC. This may increase the amount of credit you can claim.

Include Nontaxable Combat Pay: If you received nontaxable combat pay, consider including it in your earned income calculation.
Evaluate the Impact: Determine whether including the combat pay will increase your EITC amount.

4.6. Avoid Common Mistakes

Avoiding common mistakes can help ensure that your EITC claim is processed correctly and that you receive the full amount of credit you are entitled to.

Incorrect SSNs: Make sure you provide accurate SSNs for yourself and any qualifying children.
Filing as Married Filing Separately: If you are married, do not file as married filing separately, as you cannot claim the EITC in this filing status.
Exceeding Investment Income Limit: Ensure that your investment income does not exceed the limit for the tax year.

4.7. Partner with Financial Experts

Collaborating with financial experts can provide invaluable assistance in maximizing your EITC claim. Platforms like income-partners.net connect you with professionals who can offer tailored advice and support.

Tax Planning Strategies: Develop effective tax planning strategies to optimize your eligibility for the EITC.
Expert Guidance: Gain insights into the complexities of EITC regulations and requirements.
Personalized Support: Receive individualized assistance based on your unique financial circumstances.

4.8. Keep Detailed Records

Maintaining meticulous records is essential for accurately calculating and substantiating your EITC claim.

Income Statements: Keep copies of all income statements, such as W-2 forms, 1099-MISC forms, and 1099-NEC forms.
Expense Records: Retain records of all deductible expenses, including receipts, invoices, and bank statements.
Tax Returns: Keep copies of your tax returns and any supporting documentation for at least three years.

4.9. Stay Informed of Any Changes

Tax laws and regulations can change, so it’s important to stay informed of any updates that may affect your EITC eligibility or the amount of credit you can claim.

IRS Resources: Regularly check the IRS website for updates and guidance on the EITC.
Tax Newsletters: Subscribe to tax newsletters and publications to stay informed of any changes.
Professional Advice: Consult with a tax professional to ensure you are up-to-date with the latest tax laws.

4.10. The Role of income-partners.net

income-partners.net offers a range of services and connections that can assist you in maximizing your EITC claim. By utilizing the resources available on the platform, you can:

Connect with Tax Professionals: Access a network of experienced tax professionals who can provide personalized advice and assistance.
Stay Updated on Tax Laws: Receive timely updates on any changes to tax laws and regulations that may affect your EITC eligibility.
Optimize Your Financial Planning: Develop a comprehensive financial plan that incorporates the EITC and other tax benefits.

By following these strategies and utilizing the resources available through income-partners.net, you can maximize your EITC claim and improve your financial well-being.

5. Common Mistakes to Avoid When Claiming the EITC

Claiming the Earned Income Tax Credit (EITC) can be complex, and it’s easy to make mistakes that could delay your refund or result in a reduced credit amount. Being aware of these common errors can help you file accurately and maximize your benefits. Here are some of the most frequent mistakes to avoid when claiming the EITC:

5.1. Incorrect Social Security Numbers (SSNs)

One of the most common mistakes is providing an incorrect Social Security Number (SSN) for yourself, your spouse, or your qualifying children. The IRS verifies SSNs with the Social Security Administration, and any discrepancy can cause delays or denials.

Double-Check SSNs: Always double-check the SSNs on your tax return to ensure they match the Social Security cards.
Use Original Cards: Refer to the original Social Security cards when entering the numbers.
Notify SSA of Errors: If there’s an error on your Social Security card, contact the Social Security Administration (SSA) to correct it.

5.2. Not Meeting the Residency Requirements

To claim the EITC, you and your qualifying children must meet certain residency requirements. You must live in the United States for more than half the tax year, and your qualifying child must live with you for more than half the tax year.

Understand the Rules: Be clear about the residency requirements for both you and your qualifying children.
Document Residency: Keep records that can prove residency, such as school records, medical records, and utility bills.
Temporary Absences: Understand that temporary absences, such as for school or medical care, are generally counted as time lived at home.

5.3. Incorrect Filing Status

Your filing status can significantly impact your eligibility for the EITC. You must file as single, head of household, qualifying widow(er), or married filing jointly to claim the credit. Filing as married filing separately disqualifies you from claiming the EITC.

Choose the Right Status: Carefully consider your situation and choose the filing status that best applies to you.
Understand the Rules: Be aware of the specific requirements for each filing status.
Seek Advice: If you’re unsure about your filing status, seek advice from a tax professional.

5.4. Exceeding the Investment Income Limit

The EITC has an investment income limit, which is $11,600 for the 2024 tax year. If your investment income exceeds this limit, you are not eligible for the credit.

Calculate Investment Income: Add up all your investment income, including interest, dividends, capital gains, and other investment income.
Stay Below the Limit: Ensure that your investment income is below the limit for the tax year.
Plan Accordingly: If your investment income is close to the limit, consider strategies to reduce it, such as contributing to tax-advantaged retirement accounts.

5.5. Not Claiming a Qualifying Child When Eligible

Many taxpayers miss out on the EITC because they don’t realize they have a qualifying child. A qualifying child must meet specific requirements related to relationship, age, residency, and dependency.

Review the Requirements: Familiarize yourself with the requirements for a qualifying child.
Gather Documentation: Collect documents that prove the child meets the requirements, such as birth certificates, school records, and medical records.
Claim the Credit: If you have a qualifying child, be sure to claim the EITC on your tax return.

5.6. Incorrectly Calculating Earned Income

Earned income includes wages, salaries, tips, and net earnings from self-employment. Incorrectly calculating your earned income can lead to an inaccurate EITC claim.

Use W-2 Forms: Report all the amounts from box 1 of your W-2 forms.
Report Self-Employment Income Accurately: If you’re self-employed, report your income and expenses on Schedule C or Schedule F, and calculate your net earnings accurately.
Include All Sources of Income: Include all sources of earned income, such as wages, salaries, tips, and self-employment income.

5.7. Overlooking Deductions

Failing to claim all eligible deductions can increase your AGI and reduce the amount of EITC you can claim.

Identify Deductions: Identify all the deductions you’re eligible for, such as contributions to traditional IRAs, student loan interest payments, and alimony paid.
Keep Records: Keep records of all deductible expenses, such as receipts, invoices, and bank statements.
Claim All Deductions: Be sure to claim all eligible deductions on your tax return.

5.8. Not Filing a Tax Return

Even if your income is below the filing threshold, you must file a tax return to claim the EITC. Many people miss out on the credit because they don’t realize they need to file.

File a Return: File a tax return, even if you’re not otherwise required to do so.
Claim the EITC: Use Form 1040 to claim the EITC on your tax return.
File on Time: File your tax return by the due date, which is typically April 15th.

5.9. Failing to Keep Adequate Records

Failing to keep adequate records can make it difficult to substantiate your EITC claim if the IRS questions it.

Keep Income Statements: Keep copies of all income statements, such as W-2 forms, 1099-MISC forms, and 1099-NEC forms.
Keep Expense Records: Retain records of all deductible expenses, including receipts, invoices, and bank statements.
Keep Tax Returns: Keep copies of your tax returns and any supporting documentation for at least three years.

5.10. The Role of income-partners.net

income-partners.net can provide valuable assistance in avoiding common mistakes when claiming the EITC. By utilizing the resources available on the platform, you can:

Connect with Tax Professionals: Access a network of experienced tax professionals who can provide personalized advice and assistance.
Stay Informed: Stay up-to-date on the latest tax laws and regulations.
Optimize Your Financial Planning: Develop a comprehensive financial plan that incorporates the EITC and other tax benefits.

By avoiding these common mistakes and utilizing the resources available through income-partners.net, you can ensure that you claim the full amount of EITC you are entitled to and improve your financial well-being.

6. EITC and Other Tax Credits

Qualifying for the Earned Income Tax Credit (EITC) can also open the door to other valuable tax credits and benefits. Understanding how the EITC interacts with these additional credits can help you maximize your overall tax savings and improve your financial situation. Here are some of the other tax credits you may qualify for if you are eligible for the EITC:

6.1. Child Tax Credit (CTC)

The Child Tax Credit (CTC) is a credit for taxpayers who have qualifying children. For the 2024 tax year, the maximum CTC amount is $2,000 per qualifying child.

Eligibility: To claim the CTC, the child must be under age 17 at the end of the tax year, be your son, daughter, stepchild, adopted child, brother, sister, stepbrother, stepsister, or a descendant of any of these, and meet certain residency requirements.
Refundable Portion: A portion of the CTC is refundable, meaning that if the amount of the credit exceeds the amount of taxes you owe, you will receive the difference as a refund.
Interaction with EITC: If you qualify for both the EITC and the CTC, you can claim both credits on your tax return.

6.2. Child and Dependent Care Credit

The Child and Dependent Care Credit is a credit for taxpayers who pay expenses for the care of a qualifying child or other dependent so they can work or look for work.

Eligibility: To claim the Child and Dependent Care Credit, you must have paid expenses to allow you to work or look for work, and the care must be for a qualifying child under age 13 or a dependent who is incapable of self-care.
Credit Amount: The amount of the credit depends on your income and the amount of expenses you paid.
Interaction with EITC: If you qualify for both the EITC and the Child and Dependent Care Credit, you can claim both credits on your tax return.

6.3. American Opportunity Tax Credit (AOTC)

The American Opportunity Tax Credit (AOTC) is a credit for qualified education expenses paid for an eligible student for the first four years of higher education.

Eligibility: To claim the AOTC, the student must be pursuing a degree or other credential, be enrolled at least half-time for at least one academic period beginning in the tax year, and not have completed the first four years of higher education.
Credit Amount: The maximum AOTC amount is $2,500 per student.
Refundable Portion: 40% of the AOTC is refundable, meaning that you can receive up to $1,000 as a refund.
Interaction with EITC: If you qualify for both the EITC and the AOTC, you can claim both credits on your tax return.

6.4. Lifetime Learning Credit (LLC)

The Lifetime Learning Credit (LLC) is a credit for qualified education expenses paid for students enrolled in undergraduate, graduate, and professional degree courses, as well as courses taken to acquire job skills.

Eligibility: To claim the LLC, the student must be taking courses to acquire job skills or pursue a degree or other credential.
Credit Amount: The maximum LLC amount is $2,000 per tax return.
Interaction with EITC: If you qualify for both the EITC and the LLC, you can claim both credits on your tax return.

6.5. Saver’s Credit (Retirement Savings Contributions Credit)

The Saver’s Credit is a credit for low- to moderate-income taxpayers who make contributions to a retirement account, such as a 401(k) or IRA.

Eligibility: To claim the Saver’s Credit, you must be age 18 or older, not be a student, and not be claimed as a dependent on someone else’s return.
Credit Amount: The amount of the credit depends on your AGI and the amount of your retirement contributions. The maximum contribution that qualifies for the credit is $2,000 for single filers and $4,000 for married filing jointly.
Interaction with EITC: If you qualify for both the EITC and the Saver’s Credit, you can claim both credits on your tax return.

6.6. Health Coverage Tax Credit (HCTC)

The Health Coverage Tax Credit (HCTC) is a credit for eligible individuals who pay for health coverage.

Eligibility: To claim the HCTC, you must be receiving trade adjustment assistance (TAA) benefits or be an eligible retired public safety officer.
Credit Amount: The HCTC pays 72.5% of qualified health insurance premiums.
Interaction with EITC: If you qualify for both the EITC and the HCTC, you can claim both credits on your tax return.

6.7. State EITC Programs

In addition to the federal EITC, many states also offer their own EITC programs. These state EITCs can