IRS Publication 596
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Definition of 'IRS Publication 596'A document published by the Internal Revenue Service (IRS) that provides information on the earned income credit (EIC) available to individuals earning below a certain income level. In order to qualify to receive the EIC, a taxpayer must have an adjusted gross income (AGI) that falls below a certain threshold, have a valid Social Security number, cannot be married but filing separately, must be a U.S. citizen or resident alien, must not have a high level of investment income and must be employed. If the taxpayer does not have a qualifying child then he or she must be between the ages of 25 and 65. |
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Investopedia explains 'IRS Publication 596'In order to received the earned income credit, Form 1040 must be filed with the IRS. The taxpayer can then have the IRS determine the amount of EIC, or can use a worksheet to make the calculations. Certain taxpayers are also able to claim an advanced EIC payment if they expect to have a child within the year or earn an income below the qualifying threshold. |
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