Your Tax Question - 062

Dear John, Will I qualify for the EIC this year? Thanks, Frank

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Hi Frank,

Um, usually I require a little more information but I'll tell you what I know.

Here are the 2010 tax year income limits, maximum EITC amount and the EITC-related tax law changes. You can also access the information for:

2010 Tax Year

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

• $43,352 ($48,362 married filing jointly) with three or more qualifying children
• $40,363 ($45,373 married filing jointly) with two qualifying children
• $35,535 ($40,545 married filing jointly) with one qualifying child
• $13,460 ($18,470 married filing jointly) with no qualifying children

Tax Year 2010 maximum credit:

• $5,666 with three or more qualifying children
• $5,036 with two qualifying children
• $3,050 with one qualifying child
• $457 with no qualifying children

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

The 2010 Tax Act extended the previous EIC extensions through 2012. And remember, this credit is a refundable credit that returns any amount below $0 to you.

While I am not sure of your specific situation Frank, you should be able to assess it for yourself with the information that I have provided.

And remember, should you want some help with this - I would love to prepare your taxes. ;-)

John