Q:  What is the Earned Income Tax Credit (EITC)?   
A:  The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low-income working individuals and families.  The tax credit was passed by the U.S. Congress in 1975 in an effort to offset the burden of Social Security taxes and to provide an incentive for people to work.     
      Those eligible for the Earned Income Tax Credit include individuals and families who earned income less than: $12,880 ($15,880 if married and filing jointly) if there is no qualifying child; $33,995 ($36,995 if married and filing jointly) if there is one qualifying child; or $38,646 ($41,646 if married and filing jointly) if there is more than one qualifying child.
           
Q:  Who can claim the credit?       
A:  To claim the EITC on your federal tax return, you must follow certain guidelines.  For example, you must:
• have a valid Social Security number;
• have earned income during the year;
• meet the income guidelines provided above;
• not have investment income of  more than $2,950;
• either be a U.S. citizen or a “resident alien” who has had this status all year.
To claim the EITC, your tax-filing status can be any filing status except “married filing a separate return.”  Check with the Internal Revenue Service (IRS) on other individual specific eligibility guidelines.
            
Q:  Who might I be able to claim as a qualifying child under EITC?
A:  Basically, a qualifying child is a child who is your son, daughter, stepchild, adopted child, eligible foster child or descendant of any of them.  For purposes of EITC, other qualifying “children” may include your brother, sister, stepbrother, stepsister, or a descendant of any of them.  Children must be either under age 19 by end of the tax year or under 24 and a full time student, or they must have been permanently disabled during the year, and lived with you in the United States for more than six months during the tax year.
          
Q:  Where can I go to get answers to other questions about my individual situation and eligibility? 
A:  Visit the IRS.gov Web site, click on “More Forms and Publications,” and choose “Publication 596”for information about the Earned Income Tax Credit, or choose “Earned Income Tax Credit” under “Frequently Asked Questions.”  Also, you may wish to call the IRS at (800) 829-1040. 

4/15/2009

Law You Can Use is a weekly consumer legal information column provided by the Ohio State Bar Association.  This article was prepared by Jay Seaton of the Consumer Credit Counseling Service of the Midwest, reviewed by Theodore Gudorf, a Dayton-area attorney, and updated by Jay Seaton.