Do You Qualify for the Earned Income Tax Credit?

Millions of Americans forfeit critical tax relief each year by failing to claim the Earned Income Tax Credit (EITC), a federal tax credit for low-to-moderate-income individuals who work. Taxpayers who qualify and claim the credit could owe less federal tax, owe no tax, or even receive a refund.

The EITC is based on the amount of your earned income and whether or not there are qualifying children in your household. If you have children, they must meet the relationship, age, and residency requirements. Additionally, you must be a US citizen, have a valid social security card, and file a tax return to claim the credit.

General requirements: If you were employed for at least part of 2011 and are at least age 25, but under age 65, and are not a dependent of anyone else you may be eligible for the EITC based on these general requirements:

  • You earned less than $13,660 ($18,740 if married filing jointly) and did not have any qualifying children.
  • You earned less than $36,052 ($41,132 if married filing jointly) and have one qualifying child.
  • You earned less than $40,964 ($46,044 if married filing jointly) with two or more qualifying children.
  • You earned less than $43,998 ($49,078 if married filing jointly) with three or more qualifying children.

Tax Year 2011 Maximum Credit

  • $5,751 with three or more qualifying children
  • $5,112 with two or more qualifying children
  • $3,094 with one qualifying child
  • $464 with no qualifying children

Investment income must be $3,150 or less for the year.

If you think you qualify for the EITC but aren't sure, call our office today.