Who determines the eligibility for a tax credit?

The Internal Revenue Service (IRS) is responsible for determining the eligibility for federal tax credits. This includes establishing the criteria that taxpayers must meet to qualify for various credits, such as the Earned Income Tax Credit or the Child Tax Credit. The IRS sets guidelines, publishes instructions, and provides tax forms that outline these eligibility requirements. Taxpayers must follow these guidelines when filing their tax returns to claim any credits.

State authorities may have their own credits and eligibility criteria, but the question specifically addresses tax credits at the federal level, which fall under the jurisdiction of the IRS. While taxpayers can self-assess their eligibility based on the information provided by the IRS, the ultimate authority on eligibility rests with the IRS itself, which regulates federal tax credits.