What are the requirements to claim the earned income credit?

To be entitled to claim the earned income credit, there are a variety of requirements you must meet. For the 2006 tax year, these requirements include:

1. You must have had earned income for the tax year.

2. If you had any investment income for the tax year, it must be less than $2,800 (for the 2006 tax year).

3. If you do not have a qualifying child, your earned income and adjusted gross income in 2006 must have been less than $112750 (or $14,120 if you are married filing jointly).

4. If you have one qualifying child, your earned income and adjusted gross income in 2006 must have been less than $32,001 (or $34,001 if you are married filing jointly).

5. If you have more than one qualifying child, your earned income and adjusted gross income in 2006 must have been less than $36,348 (or $38,348 if you are married filing jointly).

6. If you are married, you must be filing jointly - you cannot claim the credit if you are married filing separately.

7. You cannot be filing Forms 2555 or 2555-EZ, which relate to foreign earned income.

There are additional requirements that you must meet, which differ based on whether or not you have one or more qualifying children. A qualifying child is any of your children, grandchildren, siblings, step- or half-siblings, nieces or nephews, etc. who were 18 or younger throughout the tax year and who lived with you for more than half of the tax year. If you have one or more qualifying children, in addition to requirements 1 through 7 above, you must meet the following requirements: (i) your qualifying children cannot be used as qualifying children for anyone else claiming the earned income credit; and (ii) you cannot be anyone else’s qualifying child.

If you do not have one or more qualifying children, in addition to requirements 1 through 7 above, you must meet the following requirements: (i) you must have been between 25 and 64 years old throughout the tax year; (ii) you cannot be claimed as anyone else’s dependent; (iii) you must have lived in the United States for more than half of the tax year; and (iv) you cannot be anyone else’s qualifying child.