Earned Income Credit

Earned Income CreditWhat is EIC?
The Earned Income Credit provides up to $5,657 to low income individuals and families. 

How much EIC can I recieve?
The amount of credit you are entitled to depends upon how much income you have and the number of children you have. The American Recovery and Reinvestment Act (ARRA) provides a temporary increase in EITC and expands the credit for workers with three or more qualifying children. These changes are temporary and apply to 2009 and 2010 tax years. 

Can I claim EIC?
Look to the chart below for the number of qualifying children you have to see if you might qualify for the Earned Income Credit.

What happens if someone else claims my child for EIC?
IRS laws decide who can claim a child for EIC.  If you and another person qualify to claim the same child, then tie-breaker rules decide who can claim the child and claim EIC. 

Tie-breaker rules can be difficult to understand and the relationships of various individuals in a household can create a situation that requires the advise of a tax professional experienced with EIC and custodial arrangements between divorced or separated parents.  

When more than one person appears to qualify for EIC with the same child, we strongly recommend both you and the other person meet with one of our experienced tax professionals to discuss your tax situation.

No Children

Even if you have no children, you may qualify for up to $457 of EITC, if you meet the following rules:

  • Your income must be less than $13,440 ($18,440 married filing jointly)
  • You must have a valid Social Security Number
  • You must have earned income from employment, self-employment or another source
  • Your filing status cannot be married, filing separately
  • You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien filing a joint return
  • You cannot be the qualifying child of another person
  • If you do not have a qualifying child, you must:
    • be age 25 but under 65 at the end of the year,
    • live in the United States for more than half the year, and
    • not qualify as a dependent of another person
  • Cannot file Form 2555 or 2555-EZ (related to foreign earned income)
  • For 2009, your  investment income must be $3,100 or less.

1  Qualifying  Child

You may qualify to receive up to $3,043 of EIC if you meet the following rules:

  • Your income must me less than $35,463 ($40,463 married filing jointly)
  • You (your spouse, if married) and your child must have valid Social Security Numbers
  • You must have earned income from employment, self-employment or another source
  • Your filing status cannot be married, filing separately
  • You cannot be the qualifying child of another person
  • You and your child must have lived in the United States for more than half the year
  • You cannot qualify as a dependent of another person
  • You cannot file Form 2555 or 2555-EZ (related to foreign earned income)
  • For 2009, your  investment income must be $3,100 or less.

2 Qualifying Children

You may qualify to receive up to $5,028 of EIC if you meet the following rules:

  • Your income must be less than $40,295 ($45,295 if married filing jointly)
  • You (your spouse, if married) and each child you claim for EIC must have a valid Social Security Number
  • You must have earned income from employment, self-employment or another source
  • Your filing status cannot be married, filing separately
  • You cannot be the qualifying child of another person
  • You and your child must have lived in the United States for more than half the year
  • You cannot qualify as a dependent of another person
  • You cannot file Form 2555 or 2555-EZ (related to foreign earned income)
  • For 2009, your  investment income must be $3,100 or less.

3 or More Qualifying Children

You may qualify to receive up to $5,657 of EIC if you meet the following rules:

  • Your income must be less than $43,279 ($48,279 if married filing jointly)
  • You (your spouse, if married) and each child you claim for EIC must have a valid Social Security Number
  • You must have earned income from employment, self-employment or another source
  • Your filing status cannot be married, filing separately
  • You cannot be the qualifying child of another person
  • You and your child must have lived in the United States for more than half the year
  • You cannot qualify as a dependent of another person
  • You cannot file Form 2555 or 2555-EZ (related to foreign earned income)
  • For 2009, your  investment income must be $3,100 or less.