What is the EITC?
The Earned Income Tax Credit (EITC), sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.


How do I qualify?
• You must have a valid Social Security Number
• You must have earned income from employment or from self-employment.
• Your filing status cannot be married, filing separately.
• You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return.
• You cannot be a qualifying child of another person.
• You cannot file Form 2555 or 2555-EZ (related to foreign earn income)
• You must meet these EITC Thresholds and Limitations


Wait, this can’t be free money. Will I owe more money next year if I claim the EITC now?
No. This is federal money that is set aside for you if you qualify. It has no effects towards next year’s tax return.


I don’t know if I qualify. Can someone help me find out if I do?
Find out if you are eligible for the Earned Income Tax Credit (EITC) by answering some questions and providing basic income information using the IRS’s EITC Assistant. Available in English and Spanish.

EITC Publications and Other Resources
All the forms and publications you may need can be located here.

Free Help
You may want to visit a volunteer site. Trained community volunteers can help you with special credits such as the Earned Income Tax Credit (EITC), Child Tax Credit, and Credit for the Elderly for which you may qualify.


Low Income Taxpayer Clinics (LITCs)
LITCs represent low income taxpayers before the Internal Revenue Service. They also assist taxpayers in audits, appeals, and collection disputes and can help taxpayers respond to IRS notices and correct account problems.

Taxpayer Rights
An explanation of taxpayer rights can be located here.


What if I have not filed a return in previous years and but have discovered that I had been eligible for the Earned Income Tax Credit (EITC)?
Good News! An eligible worker can file a return and claim the Earned Income Tax Credit (EITC) for three previous years. For example, in 2008 workers can still file taxes for 2006. If a worker failed to file or claim the EITC in the past, he or she could still file for 2005, 2006 and 2007. A worker must file a separate return for each prior year. There is no late filing penalty, unless the worker owed income tax in a previous year. The amount owed to the IRS will be deducted from the EITC. Workers who may owe taxes in excess of their EITC should seek assistance from a Low Income Taxpayer Clinic, accountant, or attorney and, if necessary, arrange a payment agreement with the IRS.
You can file your taxes for free and claim the Earned Income Tax Credit for 2005, 2006 and 2007 at www.icanefile.org?caller=650
For more answers, please visit: http://www.irs.gov/individuals/article/0,,id=96466,00.html


I missed the filing deadline of April 15. Can I still file my taxes and see if I am eligible for the EITC or stimulus check?
Yes. You have until October 15, 2008 to file your taxes for 2007. If you filed an extension prior to the April 15th deadline and have paid at least 90% of any taxes owed, you should not incur any penalties or fees. If you did NOT file an extension to your tax return deadline before April 15th, you can still submit until October 15th, but you may be charged interest on tax due as well as any late penalties that the IRS may charge.
For more information, please visit: http://www.irs.gov/newsroom/article/0,,id=108542,00.html