Do you qualify for the Earned Income Tax Credit?

The Earned Income Tax Credit for Tax Year 2007 lets some working families with children and some workers without children pay less federal income tax or get money back. This money can then be used for anything.

There are two types of families who qualify for the earned income credit. One type is for workers between ages 25 and 65 with no children. The other type is for workers with qualifying children. This child can be a son, daughter, adopted child, grandchild, stepchild, your brother, sister, stepbrother, or stepsister whom you cared for as you would your own child; or a foster child placed by a government or private agency. The child had to live with you for more than six months in 2007. This child must be under age 19, or under age 24 and a full-time student, or any age if the child is permanently disabled.

The money you receive varies on your earnings in 2007, whether you have qualifying children, and how many qualified children you have. If you have no children and are between the ages of 25 to 65 and earned less than $12,590 ($14,590 for married filing jointly) you can receive up to $428.

If you have one qualified child and earned less than $33,241 ($35,241 for married filing jointly) you can receive up to $2,853. With more than one qualified child and an income of less than $37,783 ($39,783 for married filing jointly) you can receive up to $4,716. Your investment income during 2007 can’t be more than $2,900.

To get your earned income credit if you have a qualifying child, file Form 1040 or Form 1040A and attach Schedule EIC for the Earned Income Tax Credit. To get your earned income credit if you don't have a child, file Form 1040, Form 1040A or Form 1040EZ. These forms are available at libraries, some post offices and banks. There are a number of free tax preparation sites throughout New Hampshire where IRS-certified volunteers are trained to help you fill out the tax forms. These sites become operational in late January.

For more information about the earned income tax credit, contact your local UNH Cooperative Extension office and request the free publication titled "Earned Income Tax Credit for Tax Year 2007." If you’re interested in receiving your earned income tax credit in your paycheck during the year, request the free publication titled "2008 Advance Earned Income Tax Credit."

by Suzann Enzian Knight, UNH Cooperative Extension Specialist, Family Resource Management