2009 Tax Year
What is the Earned Income Tax Credit (EITC)?
The Earned Income Tax Credit or the EITC is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.
To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to have a filing requirement.
The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.
New for tax year 2009:
The amount of EITC increased for workers with a third qualifying child* and the rules changed for determining who is a qualifying child.
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
The Fostering Connections to Success and Increasing Adoptions Act of 2008 changed the uniform definition of a child. Now, a "qualifying child" must:
- Be younger than the taxpayer claiming that child unless the child is disabled and
- Not have filed a joint return except to claim a refund
It also added a new Parent AGI rule. If the same child is a qualifying child of a parent and another relative, the person who is not the parent can claim the child only if their AGI is higher than the AGI of any parent of the child.
*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.
For more information on whether a child qualifies you for the EITC, see Publication 596, Chapter 2, Rules If You Have a Qualifying Child.
Investment income must be $3,100 or less for the year.
The maximum Advance EITC workers can receive from their employers is $1,826.
Rules for Everyone:
- Must have a valid social security number.
- Filing status cannot be "married filing separately".
- Must be U.S. citizen or resident alien all year.
- Cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income).
- Investment income must be $3,100.
- Cannot be a qualifying child of another person.
Miami-Dade County's Free Tax Filing Assistance Program can help you apply for tax credits
The Mayor's Office and the Board of County Commissioners once again have launched the Miami-Dade County Prosperity Campaign which reaches out to low-to-moderate income residents by preparing their income tax returns at no charge. The program also helps residents apply for the Earned Income Tax Credit and Child Tax Credit.
Miami-Dade County's Free Tax Filing Assistance Sites are staffed by IRS trained volunteers. This service will provide our low-income residents with the ability to complete their tax returns - and electronic filing (e-filing), and more importantly, help individuals fill out the necessary forms to get the Earned Income Tax Credit, an often overlooked program that provides refunds to working individuals.
Low-to-moderate income residents are encouraged to visit one of our locations to receive free tax assistance. Residents must bring their W-2 Form and their child's/children social security number(s).
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for the all documents you'll need. Or for more information, call 311.
