What is Earned Income Credit?

Do I qualify?

2011 Earned Income Credit Requirements

EIC is a refundable credit the Federal Government gives certain taxpayers with lower income to help them take care of their children and pay their bills.

The maximum EIC this year is $464 if you have no qualifying children, $3,094 if you have one qualifying child, $5,112 if you have two qualifying children, and $5,751 if you have three or more qualifying children.

You qualify for EIC if:

• You have less than $3,150 in disqualifying income such as interest income, dividends, rental income and capital gains.
•  You have no qualifying children and your income is less than $18,740 if married and less than $13,660 for other taxpayers.
•  You have one qualifying child and your income is less than $41,132 for MFJ and less than $36,052 for other taxpayers.
•  You have two qualifying children and your income is less than $46,044 for MFJ and less than $40,964 for other taxpayers.
•  You have three or more qualifying children and your income is less than $49,078 for MFJ and less than $43,998 for other taxpayers.
• The qualifying child  is your son, daughter, adopted child, grandchild, stepchild or descendents of any of these who at the end of the tax year is under age 19 or under age 24 and is a full-time student or any age if permanently and total disabled. 
• The qualifying child must live with you in your principle residence for over 6 months of the year.
• Your brother, sister, step or half brother or step or half sister or their descendents who meet the age test also qualify.
• A foster child may qualify if the child was placed with you by a court order or by an authorized placement agency.

If you have any questions as to whether or not you qualify, please ask me at our appointment.