What must taxpayers do to be eligible to claim the EITC?

To be eligible to claim the Earned Income Tax Credit (EITC), taxpayers must file a tax return and meet specific income limits. The EITC is designed to benefit low to moderate-income workers, and it provides a refundable tax credit, which means that even if a taxpayer does not owe taxes, they can still receive a payment from the IRS.

Filing a tax return is a crucial step because the EITC is claimed on that return, and the IRS uses the information from the submitted return to determine eligibility. Additionally, meeting the income limits is critical; the EITC phases out as income increases, and only those with incomes below certain thresholds qualify for the credit. This ensures that the benefits of the EITC are targeted towards those who need them the most.

While having dependent children can increase the amount of the EITC, it is not a strict requirement for eligibility, as some taxpayers without dependents may also qualify for a smaller credit. Filing without any income does not satisfy the requirements since at least some earned income is necessary to qualify for the EITC, and making contributions to retirement accounts does not directly influence eligibility for the EITC.