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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 2009 and your household income was less than the figures in the table below, you may be eligible for a significant refund -- in some cases, up to $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:

- $43,279 (48,279) married filing jointly) with three or more qualifying children
- $40,295 ($45,295 married filing jointly) with two qualifying children
- $35,463 ($40,463 married filing jointly) with one qualifying child
- $13,440 ($18,440 married filing jointly) with no qualifying children

Tax Year 2009 maximum credit:

- $5,657 with three or more qualifying children
- $5,028 with two qualifying children
- $3,043 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.