EIC Relationship Test

The EIC relationship test is used to identify if there is a qualifying child that meets the requirements to avail the earned income credit (EIC). The earned income credit is a facility provided to the poorer section of the society and is in the form of a refundable tax credit. The tax credit depends on various factors like income levels, number of dependants, etc. The following is the in-depth information on the EIC relationship test.

EIC Relationship Test Benefits:

The EIC relationship test is very helpful to determine if a family is eligible to get benefited from the credit of refundable tax which sometimes may be even greater than the actual tax paid by the family.

Who should take the EIC Relationship test?

Any tax paying family or individual can take the EIC relationship test. Depending on the number of qualifying children, the earned income credit would be provided. Currently the limit of availing the credit is up to a maximum of four dependants.

How to book for the EIC Relationship test?

To book for the EIC relationship test, it is required that an application called the EITC Assistant is submitted with all related details and documentation duly filled in.

What does the EIC Relationship test have?

In order to file for EIC, the form 1040A must be duly filled in and submitted. The requirements governed by Schedule EIC also are essential to avail the EIC relationship status. There are some regulations that are to be adhered to apply for the earned income credit for the qualifying child. They are:

  • There are four examinations that will be conducted to determine the qualifying child
    • The test of relationship
    • The test of age
    • The residency test
  • And The test of joint returnThe definition of ‘qualifying’ child is inclusive but not limited to son, daughter, and their next generation, step child, foster child, etc.

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