Earned Income Tax Credit

The Earned Income Tax Credit, (EITC), can be a financial boost for workers affected by hard economic times. However, 1 in 4 eligible taxpayers could miss out on the credit because they don’t check it out. Here are the top 10 things the IRS wants you to know about this valuable credit, which has been making the lives of working people a little easier for 35 years.
1. Just because you didn’t qualify last year, doesn’t mean you won’t this year.
2. If you qualify, it could be worth up to $5,657 this year. EITC not only reduces the federal tax you owe, but could result in a refund.
3. If you qualify, you must file a federal income tax return and specifically claim the credit in order to get it – even if you are not otherwise required to file.
4. Your filing status cannot be Married Filing Separately.
5. You must have a valid Social Security Number
6. You must have earned income.
7. Married couples and single people without kids may qualify.
8. Special rules apply to members of the U.S. Armed Forces in combat zones.
9. It’s easy to determine whether you qualify. The EITC Assistant, an interactive tool available on IRS.gov, removes the guesswork from eligibility rules. Just answer a few simple questions to find out if you qualify and estimate the amount of your EITC.
10. Free help is available at volunteer assistance sites and IRS Taxpayer Assistance Centers to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software program you use will figure the credit for you.
Check it out: http://www.irs.gov/individuals/article/0,,id=96406,00.html