Coping in Tough Times: Filing a Tax Return Can Produce a Windfall For the Working Poor
The Sun Sentinel answers your questions about surviving during the recession. Please use the form at the right to submit yours.
How Do I Qualify for the Earned Income Tax Credit?
Like a lot of people, the possibility that you can get a refund for the Earned Income Tax Credit of as much as $4,824 is worth exploring.
It’s a tax credit that puts billions into the hands of those who work but earn little.
To get the Earned Income Tax Credit, you start the whole process by first having earned income, which, to my surprise, is somewhat confusing to people. This means you worked and got a paycheck, so those living off their investments or pensions or retirement benefits don’t qualilfy.
And you have to have a Social Security number. This, too, trips up some noncitizens who file their returns with a Taxpayer Identification Number. If you don’t have a valid SSN, you can’t claim this tax credit.
You don’t have to have children to get it.
But you do have to have modest income.
The limits for your adjusted gross income are:
$41,646 if you are married and filing jointly and have two or more qualifying children.
$36,995 fo marrieds filing jointly who have one qualifying child
$15,880 for marrieds filing jointly who don’t have children.
There are plenty of other requirements, but these are the basics.
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Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.
