There are certain qualifications set by the IRS in order for
you to receive the Earned Income Credit. Please review IRS Publication 596 for the full details.

IRS Publication 596 - Earned Income Credit

2004 Earned Income Tax Credit Requirements

To claim the EITC, taxpayers must meet the following rules:

• Must have earned income
  
• Must have a valid Social Security number
  
• Investment income is limited to $2,650
  
• Filing status can’t be “married filing separately”
  
• Generally must be a U.S. citizen or resident alien all year
  
• Cannot be a qualifying child of another person
  
• Cannot file Form 2555 or 2555-EZ (related to foreign earned income)

Earned Income Credit - Qualifying child criteria
A qualifying child cannot be used by more than one person to claim the Earned Income Tax Credit.

The child must meet the relationship, age and residency tests.
If you don’t have a child:

• You must be at least age 25, but under age 65
  
• You cannot qualify as the dependent of another person
  
• You must have lived in the United States more than half the tax year

Earned Income Credit - Proper income reporting
You need to have worked and have earned income less than:

• $11,490 ($12,490 if married filing jointly) if there is no qualifying child
  
• $30,338 ($31,338 if married filing jointly) if there is one qualifying child
  
• $34,458 ($35,458 if married filing jointly) if there is more than one qualifying child

Earned Income Credit - Filing status
You cannot be married filing separately.

Common Earned Income Credit errors to avoid

• Taxpayers claim a child who is not a qualifying child
  
• Married taxpayers who should file as married filing separately instead file as single or head of household
  
• Income-reporting errors
  
• Taxpayers or qualifying children with incorrect Social Security numbers

NOTICE: The IRS began Residency Certification Testing in 2003. For more information, see below:

Earned Income Tax Credit (EITC) Residency Certification Test Indicator

1. There are 25,000 pre-selected taxpayers in the Earned Income Tax Credit Certification Pilot for the Service's Earned Income Credit Residency Certification Test.
   
2. OnLine Taxes (or any other electronic filing service) will be notified in the IRS acknowledgement if you were preselected.
   
3. If you are one of the 25,000 people preselected, the Earned Income Credit portion of your refund will be frozen until the Earned Income Credit Residency Test is verified.
   
4. These taxpayers who are preselected are required to submit Form 8836, Qualifying Children Residency Statement and related documents either by mail to:

   Internal Revenue Service
   Stop 4300, Annex 2
   Kansas City, MO 64999-0065
   
   OR
   
   Fax the form and documentation to
   (913) 345-3939
   
   

5. You can call the IRS at 1-800-294-2723 for questions and/or help.

Please note that Online Taxes does not have access to any additional information on your tax refund status and does not have knowledge of who has been preselected. The only way to find out more information once you have been notified you were selected is to contact the IRS at the number above.