Earned Income Tax Credit Question

Q: Last year our (husband and wife, filing joint) income was below the threshold, so we did not file taxes. We raised 2 children (ages 16 and 19). Are we eligible for Earned Income Tax Credit? If yes, 1. How do we claim it by filing taxes AT THIS TIME? Should we file both federal and state of New Jersey? 2. If we use those tax software like TaxCut or Quicken, do they show the credit automatically, or I need to go to a tax preparer? 3. For the year 2000, we had just business losses, but filed, if we qualify for EITC, could we claim it back for 2000 too? and How? 4. With an income below threshold, is there any other thing we might qualify for?

A: You MUST have earned income from employment, in order to qualify for an earned income credit. If you had earned income in either year, just file a tax return to make your claim. New Jersey also requires income earned from employment in order to qualify. You should file a return with New Jersey, reporting your self employment income. If your child

is 18 or under, and you have earned income, that child would be a qualifier. If your child is under age 24, and is a full time student, that child would also qualify you, but only if you had earned income from employment (either self employment or employment provided by others). In New Jersey, you may qualify for the Homestead Rebate or under the NJ Savers Program, you may be entitled to so refund of your real estate taxes. You'd want to file returns, in order to make those claims. A claim for 2000 will not now be honored. Neither will a claim under the "Savers Program". It is too late. You may be able to claim the homestead rebate, if an extension is granted by that state. .