How do you use the earned income credit tax table?


Quick Answer

To use the earned income credit tax table from the instructions for IRS Form 1040, 1040A or 1040EZ, first calculate your earned income using EIC worksheet A or B, explains the Internal Revenue Service. Locate your earned income in the left column of the table and your filing status and number of qualifying dependent children to the right to find out the amount of your earned income tax credit.

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Full Answer

The preliminary section of the EIC worksheet in Form 1040 instructions is the same for all filers and consists of a number of yes or no questions to find out if you are eligible for the earned income tax credit, according to the IRS. Use the information on income and dependents on Form 1040 to answer the questions. As you complete this section, the IRS informs you if any of your answers disqualify you for the credit. The second section has separate questions depending on whether you have qualifying children. To qualify, dependent children must be under 18 and close relatives such as direct progeny, stepchildren, adopted children or siblings.

Using another worksheet, calculate your earned income with data from Form 1040. Military personnel can opt to include or exclude their nontaxable combat pay, notes the IRS. To figure out the amount to use on the earned income tax table, use EIC worksheet A if you are an employee and EIC worksheet B if you are self-employed, a clergy member or a church employee.

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