EARNED INCOME LEVEL

Am I Eligible?

To Qualify for the Earned Income Tax Credit in Tax Year 2008, Earned income and adjusted gross income must each be less than:

$38,646 with two or more qualifying children
$33,995 with one qualifying child
$12,880 with no qualifying children

If married: Add $2,000 to the category above that you qualify for.

WHAT IS EARNED INCOME?

Earned income accounts for a variety of items, including:

Wages, salaries, and tips

Net earnings from self-employment

Union strike benefits

Taxable long-term disability benefits paid prior to reaching minimum retirement age.

Non-taxable Military combat pay

Household employee income

Gross income of a statutory employee

WHAT IS NOT EARNED INCOME?

There are limits as to what income is classified as ‘Earned’. The following are not considered to be Earned Income:

Non-taxable earned income

Public benefits
-Social Security, SSI, welfare benefits

Child Support

Other Taxable Income
-Unemployment benefits, alimony, interest on bank accounts

INVESTMENT INCOME OF LESS THAN $2,950

In order to qualify for the Earned Income Tax Credit, tax filers must have an investment income less than $2,950. Investment income is income from interest, dividends, rents, payments, and royalties.

MAXIMUM REFUNDABLE CREDIT

$4,824
$2,917
$  438