Earned Income Credit Tax Table

The earned income credit is a refundable tax credit designed for low-income families and individuals. The credit varies depending on your level of income and how many dependents you support. The tax credit can even generate a tax refund larger than the amount you paid in through withholding.

The easiest way to find out if you qualify for the earned income credit is to use an application found on the IRS Web site called the EITC Assistant. There's a qualifications applet for each tax year, so be sure to click on the right year. To be eligible for the earned income credit, both your earned income and adjusted gross income needs to be within certain ranges. The amount of the tax credit varies based on your earned income and how many qualifying children you are supporting in your household.

If you qualify for the earned income credit, you can receive part of the credit during the year with your paycheck instead of waiting until tax time to receive the entire amount. This is called the Advance Earned Income Tax Credit. For 2009, your employer can provide you with up to $1,826 in advance EIC credits. To request advanced EIC payments, fill out Form W-5 and give it to your employer.

In order to file a claim you must either be a citizen of the United State or a resident alien. Filers or claimants, whether they have qualifying children or not, must have lived in the US for more than half of the tax year. For people who do not have a qualifying child, you must be within the age range from 25 to 64. Those claimants must also not be claimable as another taxpayer's dependent.

Millions of American families who are eligible for the EITC do not receive it, leaving billions of additional tax credit dollars unclaimed. Research by the Government Accountability Office (GAO) and Internal Revenue Service indicates that between 15% and 25% of households who are entitled to the EITC do not claim their credit.

As with anything, there is a high price if you get caught accepting money from the EIC that you are not eligible for. The Advanced Earned Income Credit will need be repaid if it turns out that you don't qualify for the EIC when you go to file your tax return.

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