2011 Earned Income Tax Credit EITC..Do you qualify?

Good news for people working hard to make ends meet!

EITC is a refundable tax credit for people earning wages $49,078 or less from self employment or farming in 2011. You may get money back even if you have no tax withheld.

How to get the credit?

Use EITC assistant on  http://apps.irs.gov/app/eitc2011/SetLanguage.do?lang=en to check if you qualify. To get the credit, file a return and specifically claim the EITC, even if your aren’t required to file.

Many special rules apply to EITC, and can be found at http://www.irs.gov/pub/irs-pdf/p596.pdf

The instructions contain a worksheet and the earned income credit table to help you determine the amount of your credit.

General Rules:

·         Must have earned wages, tips or income from running a business, farm or investment income limited to $3150.

·         Have a valid SSN for self, spouse and qualifying children

·         Filing status must be single, head of household, married filing jointly, widow/widower

(Note: Married filing separately do not get the credit)

·         Must be a US citizen or resident alien

Income thresholds for (Both earned and adjusted gross income):

Annual Income must be less than:

$13,660 ($18,740 married filing jointly) with no qualifying children

$36,052 ($41,132 married filing jointly) with 1 qualifying child

$40,964 ($46,044 married filing jointly) with 2 children

$43,998 ($49,078 married filing jointly) with 3  or more children

Employers can help their low to moderate income employees boost their incomes at no cost!

Hang posters on your bulletin board or have EITC flyers or brochures placed in their wage statements.

Link your employees to important EITC information.

Network with other employers, government agencies, social service organizations etc. in your community who have vested interest in reaching and educating low income workers about EITC.