Earned Income Credit [EIC] Law and Legal Definition

Earned income credit refers to a tax credit that is available to employees drawing lower income with one or more qualifying children. Earned income credit can be availed at the time of filing of his/her individual tax return. It can also be paid partially in advance by the employer during the year.

Grandparents, aunts, uncles, and siblings are also eligible to claim a child as their qualifying child if the residence is shared by them with the child for a period more than six months of the tax year. In situations where more than one filer claims a child, the parent will be given predominant consideration. A qualifying child can be as old as the age of 18 at the end of the tax year, and as old as the age of 23 if classified as a full-time student for at least one long semester. Age shall be no bar for a qualifying child who is permanently and totally disabled.