The Earned Income Tax Credit (EITC) is a credit or refund designed to reduce the overall tax burden on low-to-moderate-income workers. If you qualify, the EITC may lower the amount of tax you have to pay. If your EITC exceeds the amount of your taxes, you may receive a refund. You must file a federal tax return to qualify for the EITC.

Qualification for the EITC occurs when meeting ALL of the following requirements:

--          You have earned income from a job or self-employment.

--          You were a U.S. citizen or resident alien for the entire tax year or a nonresident alien married to a U.S. citizen or resident alien.

--          You, your spouse, and any qualifying children have valid social security numbers.

--          You are married, and you and your spouse file a joint tax return.

--          You are not a qualifying child of another person.

--          Your earned income and adjusted gross income are below a specified threshold amount depending on your family size.

Your investment income is below a specified amount.

You do not file Form 2555 or 2555-EZ for claiming the foreign earned income exclusion.

Even if you do not have a qualifying child, you may quality for EITC as long as:

--          You or your spouse was at least 25 years old but less than 65 years of age at the end of the tax year.

--          You lived in the United States for more than half of the year.

--          You do not qualify as another person’s dependent.

Special EITC rules may apply to:

--          Nontaxable military or combat pay

--          Disability payments

--          Members of the clergy.

Your employer may be able to include a portion of your EITC in your take-home pay. You can learn more about the EITC and Advance EITC from the IRS Web site publication entitled “It’s easier than ever to find out if you qualify for EITC.”