Rules If You Do Not Have a Qualifying Child

This article explains the rules for claiming the Earned Income Credit (EIC) if you do not have a qualifying child. The EIC is a tax credit designed to help low-income individuals and families. To qualify for the EIC without a qualifying child, you must meet certain rules in addition to the rules in chapters 1 and 4. This article will discuss Rules 11 through 14, which are specific to individuals without a qualifying child.

Rule 11: You Must Meet the Age Requirements

To qualify for the EIC without a qualifying child, you must be at least age 25 but under age 65 at the end of 2023. If you are married filing a joint return, either you or your spouse must meet this age requirement. It doesn't matter which spouse meets the age test, as long as one of the spouses does.

You meet the age test if you were born after December 31, 1958, and before January 2, 1999. If you are married filing a joint return, you meet the age test if either you or your spouse was born after December 31, 1958, and before January 2, 1999.

If neither you nor your spouse meets the age test, you cannot claim the EIC. Enter "No" on the dotted line next to line 27 (Form 1040 or 1040-SR).

Example 1: You are age 28 and unmarried. You meet the age test.

Example 2: Your spouse meets the age test. You are married and filing a joint return. You are age 23 and your spouse is age 27. You meet the age test because your spouse is at least age 25 but under age 65.

Death of spouse: If you are filing a joint return with your spouse who died in 2023, you meet the age test if you are at least age 25 but under age 65 at the end of 2023, or your spouse was at least age 25 but under age 65 at the time of death.

Your spouse is considered to reach age 25 on the day before their 25th birthday. However, the rule for reaching age 65 is different; your spouse reaches age 65 on their 65th birthday.

Even if your spouse was born before January 2, 1999, they aren't considered at least age 25 at the end of 2023 unless they were at least age 25 at the time of death.

Example 1: You are married and filing a joint return with your spouse who died in August 2023. You are age 67. Your spouse would have become age 65 in November 2023. Because your spouse was under age 65 when he or she died, you meet the age test.

Example 2: Your spouse was born on February 14, 1998, and died on February 13, 2023. Your spouse is considered age 25 at the time of death. However, if your spouse died on February 12, 2023, your spouse isn't considered age 25 at the time of death and isn't at least age 25 at the end of 2023.

Death of taxpayer: A taxpayer who died in 2023 meets the age test if the taxpayer was at least age 25 but under age 65 at the time of death.

A taxpayer is considered to reach age 25 on the day before the taxpayer’s 25th birthday. However, the rule for reaching age 65 is different; a taxpayer reaches age 65 on the taxpayer’s 65th birthday.

Even if the taxpayer was born before January 2, 1999, they aren't considered at least age 25 at the end of 2023 unless they were at least age 25 at the time of death.

Rule 12: You Cannot Be the Dependent of Another Person

To meet this rule, you cannot be claimed as a dependent by another person. If you aren't filing a joint return, you meet this rule if you did not check the box under your name that says "Someone can claim you as a dependent."

If you are filing a joint return, you meet this rule if you did not check either box that says "Someone can claim you as a dependent" or "Someone can claim your spouse as a dependent."

If you aren't sure whether someone else can claim you as a dependent, refer to Publication 501 for the rules for claiming a dependent.

If someone else can claim you as a dependent on their return but doesn't, you still cannot claim the EIC unless the person who can claim you on their tax return isn't required to file an income tax return and doesn't file a tax return or files a return only to claim a refund of withheld income tax or estimated tax paid.

Example 1: In 2023, you were age 25, single, and living at home with your parents. You worked and weren't a student. You earned $7,500. Your parents can't claim you as a dependent. When you file your return, you do not check the "Someone can claim you as a dependent" checkbox. You meet this rule. You can claim the EIC if you meet all the other requirements.

Example 2: The facts are the same as in Example 1, except that you earned $2,000. Your parents can claim you as a dependent but decide not to. You don't meet this rule. You can't claim the credit because your parents could have claimed you as a dependent.

Joint returns: You generally can't be claimed as a dependent by another person if you are married and file a joint return.

However, another person may be able to claim you as a dependent if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return.

Example 1: Return filed to get a refund of tax withheld. You are 26 years old. You and your spouse live with your parents and had $800 of wages from part-time jobs and no other income. Neither you nor your spouse is required to file a tax return. You don't have a child. Taxes were taken out of your pay, so you file a joint return only to get a refund of the withheld taxes. Your parents aren't disqualified from claiming you as a dependent just because you filed a joint return.

Example 2: Return filed to get EIC. The facts are the same as in Example 1, except no taxes were taken out of your pay. Also, you and your spouse aren't required to file a tax return, but you file a joint return to claim an EIC of $63 and get a refund of that amount. Because claiming the EIC is your reason for filing the return, you aren't filing it only to claim a refund of income tax withheld or estimated tax paid. Your parents can't claim you or your spouse as a dependent.

Rule 13: You Cannot Be a Qualifying Child of Another Taxpayer

You cannot be a qualifying child of another taxpayer (your parent, guardian, foster parent, etc.) if all of the following statements are true:

1. You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
2. You were: a. Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly); b. Under age 24 at the end of the year, a student, and younger than that person (or that person's spouse, if the person files jointly); or c. Permanently and totally disabled, regardless of age.
3. You lived with that person in the United States for more than half of the year.
4. You aren't filing a joint return for the year (or are filing a joint return only to claim a refund of withheld income tax or estimated tax paid).

For more details about the tests to be a qualifying child, see Rule 8.

If you are a qualifying child of another taxpayer, you cannot claim the EIC. This is true even if the person for whom you are a qualifying child doesn't claim the EIC or meet all of the rules to claim the EIC. Enter "No" on the dotted line next to line 27 (Form 1040 or 1040-SR).

Example: You lived with your parent all year. You are age 26, unmarried, and permanently and totally disabled. Your only income was from a community center where you went three days a week to answer telephones. You earned $5,000 for the year and provided more than half of your own support. Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your parent for the EIC. Your parent can claim the EIC if your parent meets all the other requirements. Because you are a qualifying child of your parent, you can't claim the EIC. This is so even if your parent can't or doesn't claim the EIC.

Joint returns: You generally can't be a qualifying child of another taxpayer if you are married and file a joint return. However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return.

Child of a person not required to file a return: You aren't the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you meet the relationship, age, residency, and joint return tests isn't required to file an income tax return and either:

• Doesn't file an income tax return, or
• Files a return only to get a refund of income tax withheld or estimated tax paid.

Example 1: Return not required. You lived all year with your parent. You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. You have no other income, no children, and provided more than half of your own support. Your parent had no gross income, isn't required to file a 2023 tax return, and doesn't file a 2023 tax return. As a result, you aren't your parent's qualifying child. You can claim the EIC if you meet all the other requirements to do so.

Example 2: Return filed to get a refund of tax withheld. The facts are the same as in Example 1, except your parent had wages of $1,500 and had income tax withheld from wages. Your parent files a return only to get a refund of the income tax withheld and doesn't claim the EIC or any other tax credits or deductions. As a result, you aren't your parent's qualifying child. You can claim the EIC if you meet all the other requirements to do so.

Rule 14: You Must Have Lived in the United States More Than Half of the Year

To qualify for the EIC, your home (and your spouse's, if filing a joint return) must have been in the United States for more than half the year. If it wasn't, enter "No" on the dotted line next to line 27 (Form 1040 or 1040-SR).

United States: This means the 50 states and the District of Columbia. It doesn't include Puerto Rico or U.S. territories such as Guam.

Homeless shelter: Your home can be any location where you regularly live. You don't need a traditional home. If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule.

Military personnel stationed outside the United States: U.S. military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC.

Figuring and Claiming the EIC

To claim the EIC, you must meet one more rule: the earned income limits. Your earned income must be less than certain amounts based on the number of qualifying children you have.

• $56,838 ($63,398 for married filing jointly) if you have three or more qualifying children who have valid SSNs.
• $52,918 ($59,478 for married filing jointly) if you have two qualifying children who have valid SSNs.
• $46,560 ($53,120 for married filing jointly) if you have one qualifying child who has a valid SSN.
• $17,640 ($24,210 for married filing jointly) if you don't have a qualifying child who has a valid SSN.

Earned income generally includes wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, isn't earned income. However, there is an exception for nontaxable combat pay, which you can choose to include in earned income.

If you are self-employed, a statutory employee, or a member of the clergy or a church employee who files Schedule SE (Form 1040), you will figure your earned income by using the worksheet in Step 5 of the Form 1040 instructions for line 27 and then filling out Part 4 of EIC Worksheet B in the Form 1040 instructions. Be sure to see the specific instructions for clergy or church employees, if applicable, before completing the worksheet in Step 5.

The IRS can also figure the EIC for you if you follow the instructions for Line 27 in the Instructions for Form 1040. However, you should only ask the IRS to figure your EIC if you are eligible for it and meet all the necessary requirements.

If you prefer to figure the EIC yourself, you can use the EIC Worksheet in the Instructions for Form 1040. If you have a qualifying child, you will also need to complete Schedule EIC and attach it to your tax return.

Special Instructions - EIC Worksheets

There are two EIC worksheets available: EIC Worksheet A and EIC Worksheet B. You will need to decide which worksheet to use based on your specific circumstances.

• EIC Worksheet A: Use this worksheet if you weren't self-employed at any time in 2023 and aren't a member of the clergy, a church employee who files Schedule SE, or a statutory employee filing Schedule C.
• EIC Worksheet B: Use this worksheet if you were self-employed at any time in 2023 or are a member of the clergy, a church employee who files Schedule SE, or a statutory employee filing Schedule C.

If you had net earnings from self-employment of $400 or more, be sure to correctly fill out Schedule SE (Form 1040) and pay the proper amount of self-employment tax. When figuring your net earnings from self-employment, you must claim all your allowable business expenses.

If you are eligible for the EIC and your EIC for any year after 1996 was denied or reduced by the IRS, you may need to complete Form 8862, Information To Claim Certain Credits After Disallowance, and attach it to your 2023 return to claim the credit for 2023. There are exceptions to filing Form 8862, so be sure to review the instructions and determine if it applies to your situation.

Disallowance of the EIC

If your EIC for any year after 1996 was denied or reduced by the IRS, you may need to complete an additional form, Form 8862, to claim the credit for 2023. This form is required if your EIC was denied or reduced for any reason other than a math or clerical error. There are exceptions to filing Form 8862, so be sure to review the instructions and determine if it applies to your situation.

It's important to note that if your EIC was denied or reduced due to reckless or intentional disregard of the EIC rules, you may be prohibited from claiming the EIC for a period of years. The specific time period depends on the circumstances. If your EIC claim was determined to be fraudulent, you may be prohibited from claiming the EIC for 10 years.

Please consult Form 8862 and its instructions for more information on how to complete the form and the specific rules regarding the disallowance of the EIC.