The earned income credit, or EIC, is a tax credit aimed at helping the poor and low income families to increase their standard of living. The credit can return a tax refund of as little as $400 or as much as $4,500. Read on further to find out if you can qualify for the earned income credit on your tax return.

Some think that this credit is synonymous with having children, but those who have no dependents can also qualify and receive an earned income credit from the IRS. Single workers with no dependents can earn a much smaller sum of the tax credit. In error, they don't claim it or even ask about it on their taxes.

Although it is open to many people, some individuals will not meet the requirements to earn the EIC. People who obtain the EIC must be United States citizens, have a social security number, earn a taxable income, be over twenty-five years old, not file for taxes under the Married Filing Separately category, and have a child that qualifies. Meeting these requirements is the first step in receiving the earned income credit.

The income that you earn doesn't have to be a lot, but you do have to be gainfully employed. The program provides an incentive to work and make money, even if it's not a lot. The income can even come from self-employment or freelance work.

This tax credit is easier to obtain if you have a child, but that does not mean that you will automatically get it. In order to receive the EIC on the basis of your child, the child must be under eighteen years of age, under age twenty-four and currently taking post-secondary classes, or over eighteen years of age with disabilities that are cared for by a parent.

Children will allow you to qualify for the EIC if they live with you for at least six months of the year. If the child's parents are separated, the only parent who can claim the child towards the earned income credit is the parent who currently lives with the child. The EIC can be qualified for by means of foster children as well. Any and all children who are used to obtain the EIC must have a valid social security number.

All 1040 tax forms can be used to claim the earned income credit. Married couples have to file their tax returns jointly if they want to benefit from the tax credit. Couples that are separated and do not file together must choose who will claim the children towards the tax credit.

You may qualify for the earned income tax credit without even being aware of it. You might very well be missing out on money that you are entitled too because of misconceptions regarding the EIC.