The maximum amount of income you can earn and still get the credit has increased. You may be able to take the credit if:

• You have three or more qualifying children and you earned less than $43,352 ($48,362 if married filing jointly),
• You have two qualifying children and you earned less than $40,363 ($45,373 if married filing jointly),
• You have one qualifying child and you earned less than $35,535 ($40,545 if married filing jointly), or
• You do not have a qualifying child and you earned less than $13,460 ($18,470 if married filing jointly).

Your adjusted gross income also must be less than the amount in the above list that applies to you. For details, see Rules 1 and 15.

After 2010, you can no longer get advance payments of the credit in your pay during the year as you could in 2010 and earlier years. This is because the law has changed. However, if you are eligible, you will still be able to claim the credit on your return, as explained in this chapter.

A married person filing a joint return may get more EIC than someone with the same income but a different filing status. As a result, the EIC table has different columns for married persons filing jointly than for everyone else. When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have.

You can use the EITC Assistant at www.irs.gov/eitc to find out if you are eligible for the credit. The EITC Assistant is available in English and Spanish.

The IRS may ask you to provide documents to prove you are entitled to claim the EIC. We will tell you what documents to send us. These may include: birth certificates, school records, medical records, etc. We will also send you a letter with the name, address, and telephone number of the IRS employee assigned to your case. The process of establishing your eligibility will delay your refund.

The earned income credit (EIC) is a tax credit for certain people who work and have less than $48,362 of earned income. A tax credit usually means more money in your pocket. It reduces the amount of tax you owe. The EIC may also give you a refund.

To claim the EIC, you must:

1. Qualify by meeting certain rules, and
2. File a tax return, even if you:
   1. Do not owe any tax,
   2. Did not earn enough money to file a return, or
   3. Did not have income taxes withheld from your pay.

When you complete your return, you can figure your EIC by using a worksheet in the instructions for Form 1040, Form 1040A, or Form 1040EZ. Or, if you prefer, you can let the IRS figure the credit for you.

This chapter will explain the following.

• The rules you must meet to qualify for the EIC.
• How to figure the EIC.

To qualify to claim the EIC, you must first meet all of the rules explained in Part A, Rules for Everyone. Then you must meet the rules in Part B, Rules If You Have a Qualifying Child, or Part C, Rules If You Do Not Have a Qualifying Child. There is one final rule you must meet in Part D, Figuring and Claiming the EIC. You qualify for the credit if you meet all the rules in each part that applies to you.

• If you have a qualifying child, the rules in Parts A, B, and D apply to you.
• If you do not have a qualifying child, the rules in Parts A, C, and D apply to you.

Use Table 36-1 as a guide to Parts A, B, C, and D. The table is a summary of all the rules in each part.

You have a qualifying child only if you have a child who meets the four tests described in Rule 8 and illustrated in Figure 36-1.

If your EIC for any year after 1996 was denied or reduced for any reason other than a math or clerical error, you must attach a completed Form 8862 to your next tax return to claim the EIC. You must also qualify to claim the EIC by meeting all the rules described in this chapter.

However, if your EIC was denied or reduced as a result of a math or clerical error, do not attach Form 8862 to your next tax return. For example, if your arithmetic is incorrect, the IRS can correct it. If you do not provide a correct social security number, the IRS can deny the EIC. These kinds of errors are called math or clerical errors.

If your EIC for any year after 1996 was denied and it was determined that your error was due to reckless or intentional disregard of the EIC rules, then you cannot claim the EIC for the next 2 years. If your error was due to fraud, then you cannot claim the EIC for the next 10 years.

See chapter 5 in Publication 596 for more detailed information about the disallowance period and Form 8862.