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Earned Income Tax Credit (EITC)
Internal
Revenue Service
1-800-829-3673
The Earned
Income Tax Credit (EITC) is a refundable federal tax credit for eligible low- and moderate-income individuals and
families who work. The EITC reduces the amount of
tax you owe. It may give you a refund from the Internal Revenue Service
(IRS).
Eligibility
rules are based on your family income and number of children. There is a maximum amount that each family can
receive. Married workers must file a joint tax return
to qualify. The credit is available if you have biological, adopted or foster
children. You can also apply for
children at any age who have “total and permanent” disabilities. Adult children who have mental
retardation may automatically qualify if their physical or mental condition prevents them from working a
regular job. You must have Social Security
numbers for all the children you
list.
( http://www.irs.gov/ind_info/eitc4.html)
Child Tax Credit
Internal
Revenue Service
1-800-829-3673
The Child
Tax Credit is available to taxpayers who have dependent children. Families do not receive any direct cash
payment. Single parents with incomes up to $75,000
and married parents with incomes up to $110,000 are eligible. The most credit you can receive is $500 per child.
Your
children must be under age 17 and you must claim them as dependents on your federal tax return. You can claim the credit for a son, daughter,
grandson, granddaughter, stepson,
stepdaughter or an eligible foster child. If your family income is so low that
you owe no income tax, you
generally do not qualify unless you have three or more children. Then you may qualify for the “Additional Child
Tax Credit.” (http://www.irs.gov)
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