Resources and Tools
EITC Dictionary
ADOPTED CHILD
An adopted child includes a child placed with the taxpayer for adoption by an authorized placement agency, even if the adoption is not final.
AGI
Adjusted Gross Income – a calculation that includes an individual’s income minus certain deductions, that is used in calculating the EITC.
AUTHORIZED PLACEMENT AGENCY
An authorized placement agency is an agency of a state or political subdivision of a state, or a tax-exempt organization licensed by a state, an Indian tribal government, or an organization authorized by an Indian tribal government to place Indian children, or a court.
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CHILD WHO WAS KIDNAPPED
Taxpayers may be able to claim the EITC on the basis of a child who was kidnapped by a nonfamily member.
DISABLED CHILD
A permanently and totally disabled child has to meet both of the following:
• He or she cannot engage in any substantial gainful activity because of a physical or mental condition.
• A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death.
ELIGIBLE FOSTER CHILD
A child placed with the taxpayer by an authorized placement agency.
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QUALIFYING CHILD
A child must meet certain requirements to be a “qualifying child” for the EIC. There are 3 criteria that must be met: relationship, age and residency.
Relationship: Son, daughter, stepson, stepdaughter, or a descendant of any of them OR Brother, sister, stepbrother, stepsister, or a descendant of any of them, whom the taxpayer cares for as his or her own child OR Eligible foster child (see below)
AND…
Age: Under age 19 OR Under age 24 and a full-time student OR Any age and permanently and totally disabled at any time during the year
AND…
Residency: Lived with the taxpayer in the United States for more than half of the year
SCHEDULED EIC
A form that provides information on qualifying children (e.g., names, ages, Social Security numbers). It must be completed and attached to the taxpayer’s tax return.
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TANF
Temporary Assistance for Needy Families – A welfare benefit that is generally not affected by claiming the EITC.
TCE
Tax Counseling for the Elderly – A program run by trained volunteers offering free tax preparation services for individuals 60 years of age or older.
Volunteer Income Tax Assistance Site
Volunteer Income Tax Assistance Site – A program run by trained volunteers offering free tax preparation services for low-income taxpayers.
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