Real Estate and Home Sales

Earned Income Credit 2010

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 for qualifying for the earned income credit 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.

To see if you qualify for the Earned Income Tax Credit, visit TurboTax Online.

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This entry was posted on Saturday, October 30th, 2010 at 3:29 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.