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The Curious Bag
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The earned income tax credit (EITC) provides lower-income workers with assistance in reducing their tax bill or in increasing their refund. You can only claim the EITC on the 1040EZ tax form under certain conditions.
The 1040EZ Form
This tax form should only be used in simple tax situations. Filers claiming dependents, earning more than $100,000 a year or taking itemized deductions cannot use the form.
Qualifying for EITC
Without dependents, you can qualify for the earned income tax credit in 2009 if your adjusted gross income is below $13,440 (single filers) or $18,440 (married filers filing a joint return). Either the filer or his spouse must be between 25 and 65 years of age.
Earned Income Defined
To qualify, you must have earned income from qualifying sources. These sources include wages, self employment earnings, commissions, jury duty or union strike benefits. Pensions, child support payments, unemployment compensation and welfare benefits do not count.
Determining EITC
You can allow the IRS to calculate your credit or you can use the Earned Income Tax Credit Worksheet included in the 1040EZ booklet.
Maximum EITC Amount
In 2009, the maximum earned income tax credit you can earn without qualifying dependents is $457. If you have dependents, you cannot claim the credit on a 1040EZ tax return.
Source:
IRS.gov: Earned Income Tax Credit (EITC) Questions and Answers
TurboTax: Earned Income Credit
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