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.
Qualifications for the EITC:
Earned income and adjusted gross income (AGI) must each be less than:
- $38,646 ($41,646 married filing jointly) with two or more qualifying children;
- $33,995 ($36,995 married filing jointly) with one qualifying child;
- $12,880 ($15,880 married filing jointly) with no qualifying children.
Tax Year 2008 maximum credit:
- $4,824 with two or more qualifying children;
- $2,917 with one qualifying child;
- $438 with no qualifying children.
Investment income must be $2,950 or less for the year.
A “Qualifying Child” - A “qualifying child” may enable a taxpayer to claim several tax benefits, such as head of household filing status, the exemption for a dependent, the child tax credit, the child and dependent care credit, and the earned income tax credit.
For more information about the EITC visit http://www.irs.gov/individuals/article/0,,id=96406,00.html