Earned Income Credit Changes For 2008

Here are the changes to the Earned Income Credit for 2008.

The maximum amount of the Earned Income Credit (EIC) has increased. The most you can get is:

  • $2,917 if you have one qualifying child
  • $4,824 if you have more than one qualifying child or
  • $438 if you do not have a qualifying child.

The maximum amount of income you can earn and still get the credit has also increased for 2008. You may be able to take the credit if:

  • You have more than one qualifying child and you earn less than $38,646 ($41,646 if married filing jointly),
  • You have one qualifying child and you earn less than $33,995 ($36,995 if married filing jointly), or
  • You do not have a qualifying child and you earn less than $12,880 ($15,880 if married filing jointly).

 

Earned Income Credit Changes For 2008

The maximum amount of AGI you can have and still get the credit also has increased. You may be able to take the credit if your AGI is less than the amount in the above list that applies to you.

The maximum amount of investment income you can have and still get the credit has increased to $2,950 for 2008.

If you get advance payments of the credit from your employer with your pay check, the total advance payments you get during 2008 can be as much as $1,750.

Nontaxable combat pay election

You can elect to include your nontaxable combat pay in earned income when you figure your earned income credit for 2008. This election was due to expire at the end of 2007 but has been extended to years after 2007.

2009 EIC Chart – 2009 EIC Chart
Download 2008 Earned Income Credit Pub 596