What is the Earned Income Tax Credit?

The Earned Income Tax Credit (EITC) is a federal tax credit for qualified low-income workers. Eligibility is based on your income and the number of children you have at home. This may include biological, foster, permanently and totally disabled, step, and adopted children. Even if you did not earn enough to file a tax return, you may still be able to receive the refund.

Who is eligible?

Single or married people who worked full-time or part-time during 2005, and whose income was below $38,000.

How much money can I expect?

• $4,400 for households with one or more children and a family income below $37,263 ($35,263 for a single-parent household).
• $2,662 for households with one child and a family income below $33,030 ($31,030 for a single-parent household).
• $399 for households without children. Applicants must be between the ages of 25 and 64 on December 31, 2005 and have an income below $11,750 ($13,750 for married couples).

Need more information?

For complete filing guidelines visit the Center for Budget and Policy Priorities website at www.cbpp.org/eic2006

The IRS website at 2005 Publ 596 (PDF) Earned Income Credit

IRS tax forms and publications available at www.irs.gov/formspubs

Marguerite Casey Foundation's
The Earned Income Tax Credit: Analysis and Proposals for Reform

Free tax help is available at the following organizations:

Volunteer Income Tax Assistance Program (VITA)

The VITA Program offers free tax help to low- to moderate-income ($38,000 and below) people who cannot prepare their own tax returns. Volunteers sponsored by various organizations receive training to help prepare basic tax returns in communities across the country. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. To locate the nearest VITA site, call 1-800-829-1040.

The American Association for Retired Persons (AARP)

The AARP Tax-Aide Program has nearly 32,000 IRS certified volunteers staffing 8,000 sites across the country. To find a Tax-Aide program near you click here www.aarp.org