• Be younger than the person claiming the child
• Not have filed a joint return other than to claim a refund

For more information on whether a child qualifies you for the EITC, see Publication 596, Chapter 2, Rules If You Have a Qualifying Child.

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

• $43,279 (48,279 married filing jointly) with three or more qualifying children
• $40,295 ($45,295 married filing jointly) with two qualifying children
• $35,463 ($40,463 married filing jointly) with one qualifying child
• $13,440 ($18,440 married filing jointly) with no qualifying children

Tax Year 2009 maximum credit:

• $5,657 with three or more qualifying children
• $5,028 with two qualifying children
• $3,043 with one qualifying child
• $457 with no qualifying children

Investment income must be $3,100 or less for the year.

The maximum of Advance EITC workers can receive from their employers is $1,826.

Earned income credit (EIC)

The EIC has increased for people with three or more children and for some married couples filing jointly.

The maximum AGI you can have and still get the credit also has increased. You may be able to take the credit if your AGI is less than the amount in the above list that applies to you.

Divorced or separated parents

A noncustodial parent claiming an exemption for a child can no longer attach certain pages from a divorce decree or separation agreement instead of Form 8332 if the decree or agreement went into effect after 2008. The noncustodial parent must attach Form 8332 or a similar statement signed by the custodial parent and whose only purpose is to release a claim to exemption.

Definition of custodial parent

Beginning in 2009, new rules apply to determine who is the custodial parent for tax purposes. See Custodial parent and noncustodial parent. Page 31 in Publication 17

Publication 17 – IRS Tax Guide
2009 Publication 596 – Earned Income Credit The EIC chart starts on page 46.

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Amount of credit increased

The maximum amount of the credit has increased. The most you can get is:

• $2,917 if you have one qualifying child,
• $4,824 if you have more than one qualifying child, or
• $438 if you do not have a qualifying child.

Earned income amount increased

The maximum amount of income you can earn and still get the credit has increased for 2008. You may be able to take the credit if:

• You have more than one qualifying child and you earn less than $38,646 ($41,646 if married filing jointly),
• You have one qualifying child and you earn less than $33,995 ($36,995 if married filing jointly), or
• You do not have a qualifying child and you earn less than $12,880 ($15,880 if married filing jointly).

The maximum amount of AGI you can have and still get the credit also has increased. You may be able to take the credit if your AGI is less than the amount in the above list that applies to you.

Investment income amount increased

The maximum amount of investment income you can have and still get the credit has increased to $2,950 for 2008.

Advance payment of the credit

If you get advance payments of the credit from your employer with your pay, the total advance payments you get during 2008 can be as much as $1,750.

Nontaxable combat pay election

You can elect to include your nontaxable combat pay in earned income when you figure your earned income credit for 2008. This election was due to expire at the end of 2007 but has been extended to years after 2007.

Download 2008 EIC Table – 2008 EIC Table

A tax credit usually means more money in your pocket by reducing the amount of tax you owe. The EIC in most cases gives you a tax refund.

What’s New

The Earned income amount has increased.

The maximum amount of income you can earn and still get the credit has also increased.

You may be able to take the credit if.

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

* $43,279 (48,279 married filing jointly) with three or more qualifying children
* $40,295 ($45,295 married filing jointly) with two qualifying children
* $35,463 ($40,463 married filing jointly) with one qualifying child
* $13,440 ($18,440 married filing jointly) with no qualifying children

Tax Year 2009 maximum credit:

* $5,657 with three or more qualifying children
* $5,028 with two qualifying children
* $3,043 with one qualifying child
* $457 with no qualifying children

Investment income must be $3,100 or less for the year.

The following document (Publication 596) contains the Earned Income Credit Table or EIC Table which is also referred to by Earned Income Credit Chart or EIC Chart.

Download 2009 Publication 596 – 2009 Earned Income Credit The chart starts on page 46.