Earned Income Tax Credit May Help You

The Earned Income Tax Credit (EIC) is a tax benefit for people with low or moderate incomes. People who qualify for the credit and file a federal income tax return can get back some or all of the federal income tax that was taken out of their pay during the year. You must file to claim the credit--even if you owe no tax. You even may get cash back from the Internal Revenue Service (IRS).

To qualify for the EIC tax credit, a single filer’s adjusted gross income must not exceed $11,490 if he or she has no children; $30,338 with one child; and $34,458 with two or more children. Married couples filing jointly can earn $1,000 more in each category and still claim the credit. To claim the EIC, you must meet certain requirements, including:

• You must have a valid Social Security number;
• Your tax filing status cannot be married filing separately;
• You must be a U.S. citizen or resident alien all year;
• You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income);
• Your investment income must be $2,650 or less; and
• You must have earned income (you must be employed).

More qualifying rules apply; visit the IRS Web site at irs.gov or call 800-TAX-FORM (800-829-3676). Search for or request publication 596.

Consult your tax advisor for additional detail.