Save Money with EITC - Extra Tax Credit For Low-Income Families

EITC, the Earned Income Tax Credit, sometimes called EIC is a tax credit to help you keep more of what you earned. It is a refundable federal income tax credit for low to moderate 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 EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax 2014 Tax Year requirement.

Earned Income and adjusted gross income (AGI) must each be less than:

• $46,997 ($52,427 married filing jointly) with three or more qualifying children
• $43,756 ($49,186 married filing jointly) with two qualifying children
• $38,511 ($43,941 married filing jointly) with one qualifying child
• $14,590 ($20,020 married filing jointly) with no qualifying children

Tax Year 2014 maximum credit:

• $6,143 with three or more qualifying children
• $5,460 with two qualifying children
• $3,305 with one qualifying child
• $496 with no qualifying children

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