Earned Income Tax Credit

The Earned Income Tax Credit is a tax credit designed to put money back in the pockets of working people with low-to-moderate incomes. This tax credit can reduce your taxes and help you keep more of what you earn. Filing for the Earned Income Tax Credit means that you could receive a refund payment from the Internal Revenue Service.

To get the EITC, you must meet certain requirements and file a tax return, even if your income from working is low enough that you are not required to file a return.

The EITC income limits for Tax Year 2009 are as follows:

Earned Income and adjusted gross income (AGI) must each be less than:

· $43,279 ($48,279 married filing jointly) with three or more qualifying children

· $40,295 ($45,295 married filing jointly) with two qualifying children

· $35,463 ($40,463 married filing jointly) with one qualifying child

· $13,440 ($18,440 married filing jointly) with no qualifying children.

Filing for and receiving a refund payment from the Earned Income Tax Credit has no effect on many other public benefits you may get. In most cases, the Earned Income Tax Credit payment will not be counted against your eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing, Workers with Disabilities (WWD) Medicaid Buy-In or Temporary Assistance for Needy Families (TANF).

Because the income is a federal return it will not impact any federal programs you participate in, but it is possible that it could impact some of the state funded programs you participate in.

Any questions may be directed to: rsi5@srt.com