One of the more interesting opportunities to take a tax credit is offered by the Earned Income Tax Credit (EITC). This is a credit designed to help workers with low incomes. For some who lost jobs this year, this credit becomes an option again. My husband and I took advantage of this credit for years when we first married and had a child. While you don’t have to have children to qualify, you get more if you have more children. A qualifying child is one that is under the age of 18 (unless permanently disabled) or a full-time student (in which case s/he qualifies up to age 23).
Here are the income limits for takin the EITC, depending on how many qualifying children you have:
No qualifying children: $13,440 for singles, $18,440 married filing jointly.
One child: $35,463 for singles, and $40,463 for married.
Two children: $40,295 for singles, $45,295 for married.
Three or more children: $43,279 for singles, $48,279 for married.
Clearly, once you reach a certain income level, you will no longer be eligible for the Earned Income Tax Credit. But if you experienced job hardship this year, and saw a dramatic drop in income due to the economic conditions, you might find that this credit can ease matters a bit. You can use the assessment found on the IRS web site for a little more insight, or consult a tax professional.
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