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What Is the EIC? The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $57,414. 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. Can I Claim the EIC? To claim the EIC, you must meet certain rules. These rules are summarized in Table 1. Table 1. Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Second, you must meet all the rules in one of these columns, whichever applies. Third, you must meet the rule in this column. Chapter 1. Rules for Everyone Chapter 2. Rules If You Have a Qualifying Child Chapter 3. Rules If You Do Not Have a Qualifying Child Chapter 4. Figuring and Claiming the EIC 1. Your adjusted gross income (AGI) must be less than:

• $51,464 ($57,414 for married filing jointly) if you have three or more qualifying children who have valid SSNs,

• $47,915 ($53,865 for married filing jointly) if you have two qualifying children who have valid SSNs,

• $42,158 ($48,108 for married filing jointly) if you have one qualifying child who has a valid SSN, or

• $21,430 ($27,380 for married filing jointly) if you don’t have a qualifying child who has a valid SSN. 2. You must have a valid social security number by the due date of your 2021 return (including extensions).

3.You must meet certain requirements if you are separated from your spouse and not filing a joint return.

4. You must be a U.S. citizen or resident alien all year.

5. You can’t file Form 2555 (relating to foreign earned income).

6. Your investment income must be $10,000 or less.

7.You must have earned income. 8. Your child must meet the relationship, age, residency, and joint return tests.

9. Your qualifying child can’t be used by more than one person to claim the EIC.

10. You can’t be a qualifying child of another person. 11. You must meet the age requirements.

12. You can’t be the dependent of another person.

13. You can’t be a qualifying child of another person.

14. You must have lived in the United States more than half of the year. 15. Your earned income must be less than:

• $51,464 ($57,414 for married filing jointly) if you have three or more qualifying children who have valid SSNs,

• $47,915 ($53,865 for married filing jointly) if you have two qualifying children who have valid SSNs,

• $42,158 ($48,108 for married filing jointly) if you have one qualifying child who has a valid SSN, or

• $21,430 ($27,380 for married filing jointly) if you don’t have a qualifying child who has a valid SSN. Do I Need This Publication? Certain people who file Form 1040 or 1040-SR must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 and 1040-SR instructions, when they are checking whether they can take the EIC. You are one of those people if any of the following statements are true for 2021. • You are filing Schedule E (Form 1040). • You are reporting income from the rental of personal property not used in a trade or business. • You are reporting income on Schedule 1 (Form 1040), line 8z, from Form 8814 (relating to election to report child's interest and dividends). • You have income or loss from a passive activity. • You are reporting an amount on Form 1040 or 1040-SR, line 7, that includes an amount from Form 4797. If none of the statements above apply to you, your tax form instructions may have all the information you need to find out if you can claim the EIC and to figure your EIC. You may not need this publication. But you can read it to find out whether you can take the EIC and to learn more about the EIC. Page 2 Publication 596 (2021)