Earned Income Tax Credit

The EITC is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.

The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.

•  Must have a valid Social Security number
•  You must have earned income from employment or from self-employment.
•  Your filing status cannot be married, filing separately.
•  You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return.
•  You cannot be a qualifying child of another person.
•  If you do not have a qualifying child, you must:
• Be age 25 but under 65 at the end of the year,live in the United States for more than half the year, and not qualify as a dependent of another person
•  Cannot file Form 2555 or 2555-EZ (related to foreign income)

•  Did you earn less than $13,440 ($18,440 if married filing jointly)? You could get an EITC refund up to $457!
•  Did you have one child living with you? Did you earn less than $35,463 ($40,463 if married filing jointly)? You could get an EITC refund up to $3,043!
•  Did you have two children living with you? Did you earn less than $40,295 ($45,295 if married filing jointly)? You could get an EITC refund up at $5,028!
•  Did you have three or more children living with you? Did you earn less than $43,279 ($48,279 if married filing jointly)? You could get an ETIC refund up to $5,657!

Many families that earned more than $3,000 may also get the Child Tax Credit
- up to $1,000 for each qualifying child under age 17.

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

For more information please go to www.irs.gov

A "qualifying child" must live with the worker for more than half the year. They must be under the age 19 (or under age 24 if they are full-time students). "Qualifying children" might include:

• Sons or daughters
• Stepchildren or grandchildren
• Adopted children
• Brothers or sisters
• Stepbrothers or stepsisters
• Foster children who are placed by an authorized placement agency
• A permanently and totally disabled child of any age