What is Earned Income Tax Credit?

What is earned income tax credit?

The earned income tax credit or EIC for short is a tax credit for certain people who work and have earned income under $39,783 for the 2007 earned income tax credit.

What does the earned income tax credit depend on?

The amount of earned income tax credit depends on:

• the taxpayer's earned income (AGI)
• taxpayer's filing status
• whether the taxpayer has one child, two children or no qualifying child

Is earned income tax credit a refundable tax credit?

Yes. Earned income tax credit is a refundable tax credit meaning you can get a federal tax refund even if you never had any taxes withheld.

How to claim earned income tax credit (EIC)?

To be eligible to claim the earned income tax credit, the taxpayer's earned income and the AGI must be less than:

What is the maximum earned income tax credit for 2007?

The maximum amounts for earned income tax credit for 2007 are shown below.

Is combat pay included in calculating earned income tax credit?

Including combat pay in calculating earned income tax credit is optional. Counting combat pay as income when calculating earned income tax credit (EIC) does not change the exclusion of combat pay from taxable income.

What IRS tax form is used to claim earned income tax credit?

When a taxpayer claims earned income tax credit, the credit is claimed on the IRS tax form 1040A or 1040 and Schedule EIC must be completed.