Federal Earned Income Tax Credit (EITC)
What Is It?
The Federal Earned Income Tax Credit (EITC) is the nation's largest resource for working families at the lower end of the income scale. If you are eligible to claim it, it can mean a return of up to $5,666 from the federal government. Even if you don't earn enough to owe income taxes, you may get a refund if you qualify for the EITC. There is no limit to the number of times you can claim an EITC; you can claim one every year that you qualify. Families with a permanently disabled child will always qualify for an EITC, if they meet other program requirements.
2010 Tax Year EITC Income Requirements
New for tax year 2010:
Earned Income and adjusted gross income (AGI) must each be less than:
Tax Year 2010 maximum credit:
Additional Qualifying Requirements:
The Fostering Connections to Success and Increasing Adoptions Act of 2008 changed the uniform definition of a child. Now, a "qualifying child" must:
Investment income must be $3,100 or less for the year.
The maximum advance EITC workers can receive from their employers is $1,830.
Are You Eligible?
Volunteer Income Tax Assistance Hotline 1-800-906-9887
Hours of Operation:
Monday - Friday, 7:00 a.m. - 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time)
Website: http://www.irs.gov/individuals/article/0,,id=96406,00.html
The Federal Earned Income Tax Credit (EITC) is the nation's largest resource for working families at the lower end of the income scale. If you are eligible to claim it, it can mean a return of up to $5,666 from the federal government. Even if you don't earn enough to owe income taxes, you may get a refund if you qualify for the EITC. There is no limit to the number of times you can claim an EITC; you can claim one every year that you qualify. Families with a permanently disabled child will always qualify for an EITC, if they meet other program requirements.
2010 Tax Year EITC Income Requirements
New for tax year 2010:
Earned Income and adjusted gross income (AGI) must each be less than:
• $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
• $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
• $5,036 with two qualifying children
• $3,050 with one qualifying child
• $457 with no qualifying children
Additional Qualifying Requirements:
• Be a U.S. Citizen or Legal Permanent Resident
• Have Earned Income in 2010
• Have a valid Social Security Number
• Not Qualify as a Dependent for another taxpayer
• Investment Income must be less than $3,100 (if applicable)
• If the number of qualifying children is 0, must be 25 years or older
• Have Earned Income in 2010
• Have a valid Social Security Number
• Not Qualify as a Dependent for another taxpayer
• Investment Income must be less than $3,100 (if applicable)
• If the number of qualifying children is 0, must be 25 years or older
The Fostering Connections to Success and Increasing Adoptions Act of 2008 changed the uniform definition of a child. Now, a "qualifying child" must:
• Be younger than the taxpayer claiming that child unless the child is disabled and
• Not have filed a joint return except to claim a refund
It also added a new Parent AGI rule. If the same child is a qualifying child of a parent and another relative, the person who is not the parent can claim the child only if their AGI is higher than the AGI of any parent of the child.• Not have filed a joint return except to claim a refund
• 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.
For more information on whether a child qualifies you for the EITC, see Publication 596, Chapter 2, Rules If You Have a Qualifying Child.Investment income must be $3,100 or less for the year.
The maximum advance EITC workers can receive from their employers is $1,830.
Are You Eligible?
Volunteer Income Tax Assistance Hotline 1-800-906-9887
Hours of Operation:
Monday - Friday, 7:00 a.m. - 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time)
Website: http://www.irs.gov/individuals/article/0,,id=96406,00.html
How To Apply
I-CAN!® E-file
I-CAN!® E-file can help you file your taxes for FREE. There is no income limit to use I-CAN!® E-file. Just answer simple questions on each screen and print your completed tax return. I-CAN!® E-file can also e-file (electronically file) your return to the IRS.
www.icanefile.org
Did you know...
some states and even some cities offer their own EITC?
Find out if your city or state does at http://www.irs.gov/individuals/article/0,,id=177866,00.html
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