tax forms

2012 Earned Income Credit Publication 596

The 2012 Earned Income Credit (EIC) Table starts on page 37. You can read the 2012 EIC Chart online here or optionally download it to your computer at the bottom of the page.

iPhone and other pdf enabled mobile devices click the link at the bottom of the page

eitc

Top 9 Tips For Earned Income Credit Eligibility

The Earned Income Tax Credit is a financial boost for workers earning $49,078 or less in 2011. Four of five eligible taxpayers filed for and received their EITC last year. The IRS wants you to get what you earned also, if you are eligible.

 

Here are the top 9 things the IRS wants you to know about this valuable credit, which has been making the lives of working people a little easier since 1975.

1.  As your financial, marital or parental situations change from year to year, you should review the EITC eligibility rules to determine whether you qualify. Just because you didn’t qualify last year doesn’t mean you won’t this year.

2.  If you qualify, the credit could be worth up to $5,751. EITC not only reduces the federal tax you owe, but could result in a refund. The amount of your EITC is based on your earned income and whether or not there are qualifying children in your household. The average credit was around $2,240 last year.

3.  If you are eligible for EITC, you must file a federal income tax return and specifically claim the credit – even if you are not otherwise required to file. Remember to include Schedule EIC, Earned Income Credit when you file your Form 1040 or, if you file Form 1040A, use and retain the EIC worksheet.

4.  You do not qualify for EITC if your filing status is Married Filing Separately.

5.  You must have a valid Social Security number for yourself, your spouse – if filing a joint return – and any qualifying child listed on Schedule EIC.

6.  You must have earned income. You have earned income if you work for someone who pays you wages, you are self-employed, you have income from farming, or – in some cases – you receive disability income.

7.  Married couples and single people without children may qualify. If you do not have qualifying children, you must also meet the age and residency requirements, as well as dependency rules.

8.  Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.

9.  Free help is available at Volunteer Income Tax Assistance sites to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software will figure the credit for you. To find a VITA site near you, visit the IRS.gov website.

 

Top 9 Tips For Earned Income Credit Eligibility

For more information about the EITC, see IRS Publication 596, Earned Income Credit. The 2011 EIC Chart has all your earned income credit amounts based on total income. You can download this publication and chart from this website or order it by calling 800-TAX-FORM (800-829-3676). The IRS.gov site has a Spanish version if needed.

 

Earned Income Tax Credit IRS Information

Publication 596, Earned Income Credit (EIC)
Tax Topic 601, Earned Income Credit
2011 EIC Chart

eitc

EIC Changes: Preview of Tax Year 2010

EIC or EITC is a refundable tax credit, meaning you can get money back even if you owe no federal income tax or had no tax withheld. And, if you owe tax, it can offset the amount you must pay. Below is a preview of the new 2010 earning limits and maximum credit amounts. This information was valid for the EITC in the 2010 tax year.

 

Note: The 2010 EIC Table is now available.

Earned income and adjusted gross income (AGI) must each be less than:

  • $43,352 ($48,362 married filing jointly) with three or more qualifying children
  • $40,363 ($45,373 married filing jointly) with two qualifying children
  • $35,535 ($40,545 married filing jointly) with one qualifying child
  • $13,460 ($18,470 married filing jointly) with no qualifying children

 

Tax Year 2010 maximum credit:

  • $5,666 with three or more qualifying children
  • $5,036 with two qualifying children
  • $3,050 with one qualifying child
  • $457 with no qualifying children

*The American Recovery and Reinvestment Act (ARRA) provides a temporary increase in EITC and expands the credit for workers with three or more qualifying children. These changes are temporary and apply to 2009 and 2010 tax years.

 

EIC Changes: Preview of Tax Year 2010

Investment income must be $3,100 or less for the year.

The maximum Advance EITC workers can receive from their employers is $1,830.

child

A Qualifying Child For The EIC Is

Qualifying Child for EITC

A qualifying child for the EIC is a child who is your…
Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew)
AND

child

was… Under age 19 at the end of 2009 and younger than you (or your spouse, if filing jointly) or Under age 24 at the end of 2009, a student, and younger than you (or your spouse, if filing jointly) or Any age and permanently and totally disabled
AND

Who is not filing a joint return for 2009 (or is filing a joint return for 2009 only as a claim for refund)
AND

Who lived with you in the United States for more than half of 2009. If the child did not live with you for the required time, see Exception to time lived with you on page 44 of the Form 1040A instructions or page 50 of the Form 1040 instructions.

CAUTION

If the child was married or meets the conditions to be a qualifying child of another person (other than your spouse if filing a joint return), special rules apply. For details, see page 45 of the Form 1040A instructions or page 51 of the Form 1040 instructions.

Do you want part of the EIC added to your take-home pay in 2010? To see if you qualify, get Form W-5 from your employer, call the IRS at 1-800-TAX-FORM (1-800-829-3676) or download below.

2009 Tax Forms:

Schedule EIC
2010 Form W-5
2009 – 1040
2009 – 1040a
1040 Instructions
2009 Publication 596

Earned Income Credit Changes For 2009

Earned Income Credit Changes For 2009

New for tax year 2009, is the additional EITC and income thresholds for a Third Qualifying Child and Changes to the Uniform Definition of a Child The change in the Uniform Definition of a Child adds two new rules to the definition of a “qualifying child.” The child must:

  • Be younger than the person claiming the child
  • Not have filed a joint return other than to claim a refund

For more information on whether a child qualifies you for the EITC, see Publication 596, Chapter 2, Rules If You Have a Qualifying Child. Publication 596 for tax year 2009 is available below.

Earned Income and adjusted gross income (AGI) must each be less than:

  • $43,279 (48,279 married filing jointly) with three or more qualifying children
  • $40,295 ($45,295 married filing jointly) with two qualifying children
  • $35,463 ($40,463 married filing jointly) with one qualifying child
  • $13,440 ($18,440 married filing jointly) with no qualifying children

 

Tax Year 2009 maximum credit:

  • $5,657 with three or more qualifying children
  • $5,028 with two qualifying children
  • $3,043 with one qualifying child
  • $457 with no qualifying children

Investment income must be $3,100 or less for the year.

The maximum of Advance EITC workers can receive from their employers is $1,826.

 

Earned income credit (EIC)

The EIC has increased for people with three or more children and for some married couples filing jointly.

The maximum 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.

 

Divorced or separated parents

A noncustodial parent claiming an exemption for a child can no longer attach certain pages from a divorce decree or separation agreement instead of Form 8332 if the decree or agreement went into effect after 2008. The noncustodial parent must attach Form 8332 or a similar statement signed by the custodial parent and whose only purpose is to release a claim to exemption.

 

Definition of custodial parent for EITC

Beginning  in 2009, new rules apply to determine who is the custodial parent for tax purposes. See Custodial parent and noncustodial parent. Page 31 in Publication 17

Publication 17 – IRS Tax Guide
2009 Publication 596 – Earned Income Credit The EIC chart starts on page 46.

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

IRS EITC Awareness

The IRS, the Department of Treasury and other non-government partners are kicking off EITC (Earned Income Credit) Awareness to promote the refundable tax credit for low-wage workers with children. There is special day held once a year to promote this important tax initiative to help families earning below a certain income limit and are eligible for the EITC.

Believe it or not, there are many taxpayers who are eligible to receive the Earned Income Credit, but fail to claim it simply because they are not informed,” claimed U.S. Treasurer Anna Escobedo Cabral.

According to IRS data, over 22.4 million taxpayers received more than $43.7 billion from the EITC last year. However, they estimate that approximately one in four eligible taxpayers fail to claim the EITC.

Ensuring that more eligible families receive their EITC is important this year, as it is every year. I encourage people all across America to check to see if you are eligible for the Earned Income Tax Credit,” said Treasury Secretary Henry M. Paulson, Jr.

 

IRS EITC Awareness

IRS invites community organizations, elected officials, state and local governments, schools, employers, and other interested parties to join a national grassroots effort on EITC Awareness Day, January 30, 2015, to spotlight EITC. IRS estimates four of five eligible taxpayers claim and get this important credit. Help ensure everyone gets the EITC they earned.  Best of all, EITC is a financial boost for working people and your local economy.

 

EITC is for workers whose income does not exceed the following limits in 2014:

  • $46,997 ($52,427 married filing jointly) with three or more qualifying children
  • $43,756 ($49,186 married filing jointly) with two qualifying children
  • $38,511 ($43,941 married filing jointly) with one qualifying child
  • $14,590 ($20,020 married filing jointly) with no qualifying children
  • ** Investment income must be $3,350 or less.

EITC can be a boost to you, your family and community. Anyone with earnings of $52,427 or less should see if they qualify at www.irs.gov/eitc or visit a volunteer tax assistance site.

Four of five eligible workers claim and get their EITC. We want to raise that number to five out of five. You earned it, “now file, claim it and get it.” See if you qualify at www.irs.gov/eitc.

 

Workers at risk for overlooking claiming the EITC include:

  • Living in non-traditional homes, such as a grandparent raising a grandchild
  • Whose earnings declined or whose marital or parental status changed
  • Without children
  • With limited English skills
  • Living in rural areas
  • Who are Native Americans
  • With earnings below the filing requirement
  • Who have disabilities or are raising children with disabilities

 

If you qualify for the Federal EITC, you may also be eligible for a similar credit from your state or local government. Twenty-four states, plus local municipalities including the District of Columbia, New York City and Montgomery County, Maryland, offer residents an earned income tax credit for 2014.