The Earned Income Tax Credit (EITC) is one of the few refundable tax credits available to the “average” tax payer. It is designed for the low-income individual by offsetting any income tax liability. It is important and, unfortunately, a target for fraudulent filings because any balance that remains after the tax liability is covered will be refunded to the tax payer. When a person supports dependents, the refundable credit can be significant.

To file for and receive EITC, you need:
• US citizenship (or year-long resident or non-resident alien married to a US citizen filing jointly) with a social security card valid for work
• Earned income from either employment or self-employment
• An IRS tax filing status other than Married Filing Separately (MFS)
• To have no one else able to claim you as a Qualifying Child (QC)

If you are claiming EITC and do not have a QC yourself, you need:
• To be at least 25 years old (but under 65 years old on December 31).
• Have lived in the US for more than 6 months.
• Not qualify as some one else’s dependent.

As of 2009, families with 3 or more qualified children will receive additional credit for the third child. The maximum EITC refunded is:
• $457 if you do not have a QC
• $3,043 if you have one QC
• $5,028 if you have two QC
• $5,657 if you have three or more QC

Maximum thresholds of earned income for EITC eligibility has increased in 2009 as follows:
• Below $13,440 ($18,440 if married filing jointly, MFS)
• Below $35,463 ($40, 463 if MFS) with one QC
• Below $40, 295 ($45,295 if MFS) with two QC
• Below $43,279 ($48,279 if MFS) with three or more QC