What is a significant requirement to claim the Earned Income Tax Credit (EITC)?

To successfully claim the Earned Income Tax Credit (EITC), having earned income from employment or self-employment is a fundamental requirement. The EITC is designed to assist low to moderate-income working individuals and families by reducing their tax burden and potentially providing a refund. The requirement for earned income ensures that the credit is directed toward those who are actively participating in the workforce.

Earned income can come from various sources, such as wages from a job, self-employment income, and other types of compensation for work performed. This credit is aimed at incentivizing work and helping those who are earning a living but may still be facing financial difficulties.

While being a resident of the U.S. is indeed necessary to be eligible for the EITC, it is not the primary determinant of the credit itself. Additionally, having children under 18 may increase the credit amount, but it is not a strict requirement to claim the credit. Finally, the method of filing taxes, whether electronically or on paper, does not impact eligibility for the EITC, so the requirement of electronic filing is not relevant in this context.