 |
 |
 |
 |
 |
 |
 |
 |
 |
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a refundable federal tax credit designed to reduce the tax burden on low-income families. It provides a boost in take-home pay that helps offset costs such as higher childcare and transportation that families incur as they strive to become economically self-sufficient. The EITC lifts more children out of poverty than any other government program. Some 4.8 million people, including 2.6 million children, are removed from poverty as a result of the federal EITC alone.
Unfortunately, it is estimated that 25 percent of the EITC dollars owed to working families goes unclaimed each year. That means Pierce County residents may be missing out on as much as $6.8 million in EITC refunds.
|
You can get an estimate of your earned income credit by going to www.cbpp.org and searching for “EITC calculator.” |
The EITC eligibility guidelines for adjusted gross income in 2008
Earned income and adjusted gross income (AGI) for 2008 must each be less than:
• $38,646 ($41,646 married filing jointly) with two or more qualifying children;
• $33,995 ($36,995 married filing jointly) with one qualifying child;
• $12,880 ($15,880 married filing jointly) with no qualifying children.
Investment income must be $2,950 or less for the year.
And tax year 2008 maximum credit:
• $4,824 with two or more qualifying children;
• $2,917 with one qualifying child;
• $438 with no qualifying children.