|
What is the Earned Income Credit? |
|
The Earned Income Credit is a refundable tax credit that can help a taxpayer reduce their annual income tax liability and potentially receive a refund. The credit benefits low-income taxpayers, with or without children, so long as their earned income is at or below the required threshold. In 2010, single taxpayers with one qualifying child could make no more than $35,535 or $40,545 for Married Filing Jointly; for two qualifying children $40,363 and $45,373 respectively; and for three of more qualifying children, $43,352 and $48,362 respectively. Single taxpayers who do not have any qualifying children can still claim the credit, so long as their income is under $13,460 or $18,470 for Married Filing Jointly. |
