Earned Income Credit 2011
The Earned Income Credit is a tax credit for certain people who work and have a low income. This tax credit reduces the amount of tax you owe, which may result in a refund.
The following are among the requirements that must be met in order to qualify for the earned income credit:
- Possessing a valid Social Security Number
- Having earned income via employment or self-employment
- Choosing a filing status other than Married Filling Separately
- Being a U.S. citizen or resident alien all year
- Not being a qualifying child of another person
- Meeting the income limits
If you do not have a qualifying child, there are other requirements you must meet. For a child to qualify, the following requirements must be met:
- Relationship – The child must be your son, daughter, eligible foster child, adopted child, brother, sister, half sister, half brother descendant.
- Age – Your child must be under 19 at the end of the year and younger than you or your spouse if you file a joint return, be a full time student under age 24, or be permanently and totally disable at anytime during the year, regardless of age.
- Residency – Your child must live with you more than half the year.
Another determining factor is your income. Two ways to get earned income is to work for someone who pays you, or you work in a business you own.
Once you have determined that you qualify, you have two choices to figure out what your credit may be: have the IRS figure your tax credit for you or figure the tax amount yourself by using the EIC worksheet for Form 1040.
You can use online tax software for free to explore your possible tax credits. The tax software will search for credits and tax deductions that you may not even know you qualify to claim.
To see if you qualify for the Earned Income Tax Credit, visit TurboTax Online.
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