The Earned Income Tax Credit (EITC) is a refundable federal income tax credit designed for low to moderate income working individuals and families. It was originally approved by Congress back in 1975 as a means to offset the burden of social security taxes and to provide an incentive to work, however currently this credit has the ability to lift many struggling American families above the poverty line.
To find out if you qualify for the EITC ask yourself if you meet the following
· You must have a valid Social Security Number
· You must have earned income from your job, working for yourself or another source.
· Your filing status cannot be married, filing separately.
· You must be a
· You cannot be a qualifying child of another person.
· Cannot file Form 2555 or 2555-EZ (related to foreign income)
· You can have only limited amount of investment income
Preview of 2010 Tax Year
Additionally in order to qualify you must be within the following income brackets:
Earned income and adjusted gross income (
- $43,352 ($48,362 married filing jointly) with three or more qualifying children
- $40,363 ($45,373 married filing jointly) with two qualifying children
- $35,535 ($40,545 married filing jointly) with one qualifying child
- $13,460 ($18,470 married filing jointly) with no qualifying children
Tax Year 2010 maximum credit:
- $5,666 with three or more qualifying children
- $5,036 with two qualifying children
- $3,050 with one qualifying child
- $457 with no qualifying children
*The American Recovery and Reinvestment Act (ARRA) provides a temporary increase in EITC and expands the credit for workers with three or more qualifying children. These changes are temporary and apply to 2009 and 2010 tax years.
To learn more about the EITC and how you might qualify for a tax credit please visit the IRS' EITC home page at http://www.irs.gov/individuals/article/0,,id=96406,00.html