Tax Credits for Working People (3/3/10)

Working families who earn below a certain amount, or have children, may be able to receive tax breaks from the government. The Earned Income Tax Credit (EIC) is intended to lessen the burden on low-income families struggling to make ends meet. Families qualifying for tax credits will receive a rebate check from the IRS after taxes are paid. Even if taxes aren’t owed, the benefit check can still be received, as long as taxes are filed. 

Earned Income Tax Credit Aids Low-Income Families

Thanks to the Earned Income Tax Credit (EIC), working families earning up to $43,279 can qualify for tax credits as high as $5,657. Single or married people who worked full or part-time at some point in 2009 can qualify for the EIC, depending on their income.
A worker who supported two or more children in 2009 and earned up to $40,295 can claim up to $5,028.
Single workers between the ages of 25 and 64 without children, who earned less than $13,440 can get an EIC of up to $457. Workers who were raising one child in their home and had a family income of less than $35,463 in 2009 can get an EIC of up to $3,043.
For the EIC, “qualifying children” include sons, daughters, stepchildren, grandchildren and adopted children, as long as they lived with the taxpayer for more than half of 2009. Nieces, nephews, children of a friend or foster children can qualify if they lived with the taxpayer all year and were cared for as members of the family.
Children must be under the age of 19, or under 24 if they are full-time students. Totally and permanently disabled children of any age are also considered “qualifying children.” A valid Social Security number is required for any child born before December 31, 2009.

Visit the IRS web page on the Earned Income Tax Credit