Earned Income Tax Credit (EITC)

The Earned Income Tax Credit is a refundable federal tax credit for low-and moderate income workers.

The EITC can amount to over $5,000! For many families this large refund is often used to pay down debt or for other necessities, but it can provide an opportunity to begin long term financial stabilizing activities such as opening or contributing to a savings account or purchase of Savings bonds.

To qualify for the EITC, taxpayers must work full or part time and have earned an income of at least $1 and must have been between the ages of 25 and 64 in 2010. The amount of the credit depends on income and family size. Additionally, taxpayers must meet certain requirements and file a tax return even if they did not earn enough money to be required to file a tax return.

Tax Year 2010 EITC Eligibility Requirements: (check out www.irs.gov for more qualifying information)