Are you Eligible for the Earned Income Tax Credit?

With the unemployment rate soaring, more taxpayers than ever will qualify for the Earned Income Tax Credit.  The Earned Income Tax Credit also known as EITC, is a refundable tax credit that was created to assist low to moderate income individuals and families.  This year the EITC can mean up to $5,666 for some families, and that is only the federal credit.  For those who live in New York there is an additional credit on the NYS income tax return as well.  Take a look at the Federal income limitations and credit amounts for the current tax filing 2010.

Tax Year 2010 Income Limits

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

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

If you are unsure whether or not you qualify for this credit you can use the EITC Calculator, or visit your local R&G Brenner Income Tax Professional.

Source: EITC.irs.gov