How to Get the Earned Income Tax Credit (EITC)

Member

By John Rapp
User-Submitted Article

Article Rating:

(16 Ratings)

I feel the same way

If you made less than $42,000 last year you could qualify for the Earned Income Tax Credit or EITC on your federal taxes, which means more money coming back.

Think you should get the EITC? Hold it right there! Like everything else government-related, you have to first find out if you qualify.

Here's how to qualify for the EITC.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Tax information from 2008
Basic computer skills
Sense of humor (trust me)

Step 1

IRS.gov - Making taxes fun again

Get on the IRS website.

This sounds like a load of fun, doesn't it? IRS.gov was actually pretty easy to navigate last time I checked. But now they've got this banner at the bottom of their home page inciting you to look into this thing called the Earned Income Tax Credit.

They explain it best:

"The Earned Income Tax Credit (EITC) is a tax credit for people who work but do not earn high incomes. The EITC is a valuable tool helping eligible taxpayers to lower their taxes or to claim a refund. The IRS wants all eligible taxpayers to claim this credit.

Many taxpayers who qualify for EITC may also be eligible for free tax preparation and electronic filing by participating tax professionals and volunteers. Taxpayers and tax professionals should review the rules before attempting to claim the EITC."
Step 2

Couldn't be simpler

Find out if you are eligible.

They have a very painless online application that will help assist you in figuring out your EITC eligibility.

Here are the general requirements:

* You must have earned income.
* You must have a valid Social Security number
* Investment income is limited to $2,950.
* Your filing status cannot be “married filing separately.”
* Generally, you must be a U.S. citizen or resident alien
* You cannot be a qualifying child of another person.
* You cannot file Form 2555 or Form 2555-EZ (related to foreign earned income).

For Tax Year 2008, you must have adjusted gross income of less than:

* $38,646 with two or more qualifying children.
* $33,995 with one qualifying child.
* $12,880 with no qualifying children.

There are more ins and outs when it comes to if you are married and filing jointly and other fun rules the IRS cooked up, but these are the main ones.
Step 3

Name it & claim it, baby

How to Claim EITC.

There's a PDF file on the IRS.gov website, Publication 596, that explains the process. Or you can call 1-800-829-3676 and have them send you Publication 596.

It sounds kind of complex, but it really is not very difficult.

All you need to do is log on to the IRS.gov website and they walk you through it.

Check the Resources below for direct links.
Step 4

Crazy, mixed-up tax child

Free tax services.

There are many e-file software providers and tax professionals that provide free services for low income taxpayers. To find a free tax site near you, call the IRS at 1-800-906-9887.

If you think you qualify for the EITC, the IRS recommends that you check out a free tax preparation service. I was not aware, but apparently the IRS provides lots of tax help for low-income taxpayers. There are over 400 IRS offices nationwide, and they also partner with local community and non-profit organizations to provide free tax return help for low-income and elderly taxpayers. They say there are more than 12,000 IRS volunteer sites nationwide.

You can also use Free File. Free File is a free tax preparation and electronic filing service. The IRS says Free File is "provided by software companies." What they mean is that you can get help with Free File at places like H&R Block and even on the IRS website.