Interested in having your tax return prepared for FREE?

Call 2-1-1 and ask for information on the BEST Initiative.

WHAT IS EITC?

The Earned Income Tax Credit (EITC) is a special credit for lower income workers to reduce their federal income tax.  Those who qualify will owe less and may be eligible for a larger refund.  If you worked during 2010 and your household income was less than the figures in the table below, you may be eligible for a significant refund -- in some cases, more than $5,600!

New for tax year 2009, is the additional EITC and income thresholds for a Third Qualifying Child and Changes to the Uniform Definition of a Child The change in the Uniform Definition of a Child adds two new rules to the definition of a "qualifying child." The child must:

- Be younger than the person claiming the child
- Not have filed a joint return other than to claim a refund

For more information on whether a child qualifies you for the EITC, see Publication 596, Chapter 2, Rules If You Have a Qualifying Child.

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
- $13,440 ($18,440 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

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

The maximum of Advance EITC workers can receive from their employers is $1,826.