Earned Income Tax Credit

     

Did you know??

Did you know that you may be able to give yourself a raise? If you qualify for the Earned Income Tax Credit, you can claim that credit in your paycheck by having your employer fill out a simple form. For more information on this and other helpful tax topics, please go to:

www.irs.gov/individuals/article/0,,id=96515,00.html

What is the Earned Income Tax Credit (EITC)?

The EITC is a tax credit for eligible taxpayers who work, but do not earn high incomes.

Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund beyond the amount of tax withheld.

New for tax year 2009, is the additional EITC and income thresholds for a Third Qualifying Child and Changes to the Uniform Definition of a Child The change in the Uniform Definition of a Child adds two new rules to the definition of a “qualifying child.” The child must:

Be younger than the person claiming the child

Not have filed a joint return other than to claim a refund

For more information on whether a child qualifies you for the EITC, see Publication 596, Chapter 2, Rules If You Have a Qualifying Child.

Earned Income and adjusted gross income (AGI) must each be less than:

$43,279 (48,279 married filing jointly) with three or more qualifying children

$40,295 ($45,295 married filing jointly) with two qualifying children

$35,463 ($40,463 married filing jointly) with one qualifying child

$13,440 ($18,440 married filing jointly) with no qualifying children

Tax Year 2009 maximum credit:

$5,657 with three or more qualifying children

$5,028 with two qualifying children

$3,043 with one qualifying child

$457 with no qualifying children

Investment income must be $3,100 or less for the year.

The maximum of Advance EITC workers can receive from their employers is $1,826.

For more information about the EITC visit http://www.irs.gov/individuals/article/0,,id=96406,00.html