Earned Income Tax Credit (EITC or EIC)

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The Earned Income Tax Credit is a federal income tax credit for low-income individuals and families. This credit is applied toward the federal income tax owed. Any amount in excess of the federal income tax owed is returned to the taxpayer as a refund. To be eligible for the 2010 Tax Year, you must have earned income and adjusted gross income of at least $1 but less than $13,460 ($18,470 if joint return) and no qualifying child $35,535 ($40,545 if joint return) and 1 qualifying child $40,363 ($45,373 if joint return) and 2 qualifying children $43,352 ($48,362 if joint return) and 3 or more qualifying children. There are a few additional requirements for eligibility. To see if you are eligible for the Earned Income Tax Credit, you can go to the IRS website at www.irs.gov/eitc and either view or order Publication 596. Make sure that you get the 2010 version as the earned income and AGI limits were lower in 2009. You can also see if you are eligible by answering a few questions on the IRS website. Go to www.irs.gov/eitc. Then click on "EITC Assistant " to find out if you qualify.