What is Alaska Earned Income Tax Credit (EIC Credit)?
EITC, the Earned Income Tax Credit, also known as EIC is a tax credit for low-income taxpayers. EIC Credit reduces the amount of tax you owe and may also give you a tax refund. The Amount of EIC benefits depends on taxpayer’s income and number of children. You must file a tax return to claim the EIC Credit.
What is the requirement for Alaska EITC Credit?
To qualify and claim the EITC on your tax return, you must meet all of the following:
- Must have a valid Social Security Number
- You must have earned income from employment or self-employment.
- Your filing status cannot be Married Filing Separately (MFS)
- You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a
U.S. citizen or resident alien and filing a joint return
- You cannot be a qualifying child of another person
- You must have a qualifying child dependent
If you do not have a qualifying child, you must:
- be age 25 but under 65 at the end of the year,
- live in the United States for more than half the year, and
- not qualify as a dependent of another person
- Cannot file Form 2555 or 2555-EZ (related to foreign earn income)
Does Alaska has State Earned Income Credit?
Alaska (AK) does not have state income tax therefore it does not offer the Earned Income Tax Credit (EITC) for its taxpayers. You can only claim the EIC Credit on your Federal tax return.
How much is the Alaska Earned Income Credit?