Nothing. They refer to the same program. EITC is an older term, but still commonly used. The IRS now refers to this program as the Earned Income Credit (dropping "Tax"). .

Do I have to currently be working to claim the EIC?

Not necessarily. If you are presently not working, but were employed and had earned income in the prior calendar year, you may be able to claim the EIC on this year’s income tax return.

Will claiming the EIC interfere with my ability to obtain food stamps or other forms of assistance?

No, you can claim the EIC and also receive such forms of assistance as food stamps, TANF, and Section 8 rental assistance. However, if the EIC payment you receive is not spent within a certain period of time, it may be counted as an asset and affect your eligibility for these other benefits.

Can legal immigrants claim the EIC?

Yes. Immigrants who are working in the country legally may claim the EIC if they meet the other EIC eligibility requirements. Legal immigrant workers can claim the EIC provided they have a valid Social Security number, which allows them to work. An immigrant worker’s main home must be in the United States. Also, immigrant workers’ children must have lived with them in the United States for more than six months out of the year to be able to treat them as qualifying children.

Is there a limited supply of EIC available?

No. If you are eligible to claim the EIC and file your tax return forms on time, you will receive it. Unlike such things as housing assistance, which may have limits on how many people can receive it, "supply" is not an issue with the EIC. While year-to-year, the federal government may change the specific amount of EIC that workers can claim, everyone who is eligible and applies will receive the amount to which they are entitled.

If I am eligible, do I have to wait until next year to claim and receive the EIC?

If you are eligible for the EIC and have a qualifying child you can receive advance payment of the EIC amount you may claim. This means you can receive small partial payments of the EIC in your paychecks rather than waiting until next year and receiving the EIC to which you are entitled in one lump sum. You will need to complete Form W-5 and give it to your employer. See "Advance Payment of the Earned Income Credit."

What happens if I make a mistake or error or provide false information in claiming the EIC?

It depends:

If you made an unintentional mathematical error in your computations, the IRS will likely catch the error and correct your mistake and credit you the proper EIC amount. If you make an unintentional clerical error (e.g., you provide an incorrect Social Security number), the IRS will likely require you to provide the correct number before they release the EIC to you.
If the IRS decides or determines your error was due to "reckless or intentional disregard of the IRS rules" it can deny your claim and prohibit you from claiming the EIC for the year in which you applied as well as the next two years.
If the IRS decides that your error was due to fraud (i.e., you intentionally provided false information to the IRS in order to try to claim the EIC when you weren't eligible or a higher amount than you are entitled), the IRS can prohibit you from claiming the EIC for the year in which you applied and the next 10 years.

In sum, making a small unintentional mistake when applying for the EIC should not present a problem. But giving deliberate false information to the IRS when claiming the EIC is a very bad idea.

For anyone who’s EIC filing was denied or reduced in a previous year, you will likely need to complete Form 8862, Information to Claim Earned Income Credit After Disallowance, and attach it to your tax return.

What if I need more time past April 15th to file my tax return?

If you can claim the EIC, it is most likely to your advantage to file you tax return early or by the April 15th deadline (for the preceding January – December calendar year). This is so as to receive your EIC payment sooner rather than later. However, if you need more time to file your return with the IRS, you may ask for a 4-month extension using Form 4868. This form is available in PDF file format on the IRS web site: Form 4868: Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. In order to view this form, you must have Adobe Reader installed on your computer. This is free software that you may download from the Adobe web site.

Filing for this extension will automatically be approved by the IRS and will give you until August 15th to send in your tax return. In other words, you don't need to provide a reason why you need more time, the IRS will approve the extension upon request. However, if you owe any taxes for the preceding year, you are obligated to estimate this amount and fully pay them when you apply for the extension. You should apply for the extension and pay any estimated taxes you might owe by April 15th. Failure to do so may result in the IRS charging you a penalty and back interest for any tax amount owed. However, if you don't owe any taxes, you will not be charged a penalty or interest for filing late.

If you need additional time beyond August 15th (i.e., more than 4 additional months past the April 15th due date) to complete your tax return, you will need to provide the IRS with justification (i.e., a good reason why) and they will need to approve your request. You should have first completed Form 4868 before asking for more time. Instructions on requesting additional time can be found on Form 4868.

In sum, it is best to file your tax return prior to April 15th. If you need more time, first file for an extension prior to the April 15th deadline using Form 4868 and then complete the tax paperwork necessary for claiming the EIC prior to August 15th.

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