The Earned Income Tax Credit is a federal income tax credit that has been in existence since 1975 when it was passed into law as part of tax credit legislation by the U.S. Congress.http://www.irs.gov/individuals/article/0,,id=96406,00.html

In function, it was designed to create an incentive for individuals to work and not be overly burdened by the imposition of social security taxes.http://www.irs.gov/individuals/article/0,,id=96406,00.html

Qualifying for the earned income tax credit requires the taxpayer to file a tax return for the tax year in which the credit is being claimed and to meet certain requirements related to income and claimed dependents.

As per the IRS, qualification for the Earned Income Credit requires a person to have had income during the tax year in which it is being claimed. The income could have originated from employment, self-employment or another source.

Additionally, the filer must have a child that meets all of the Qualifying Child Rules as established by the IRS. Filers that do not have a child may still be eligible for the earned income credit, provided that they meet the Rules for Workers without a Qualifying Child as stipulated by the IRS.

• Filer, inclusive of spouse if filing jointly, must be between the ages of 25 and 64 years of age.http://www.irs.gov/individuals/article/0,,id=150557,00.html

• Filer, inclusive of spouse if filing jointly, cannot be claimed as dependent on another filer's tax return.http://www.irs.gov/individuals/article/0,,id=150557,00.html

• All filers must have resided in the United States for more than 182 days during the tax year in which the credit is being claimed.http://www.irs.gov/individuals/article/0,,id=150557,00.html

In order to qualify for the earned income credit, those filing must be within the following limits on adjusted gross income for tax year 2009.http://www.irs.gov/individuals/article/0,,id=150513,00.html

• $43,279 ($48,279 if filing jointly) with three or more qualifying children
• $40,295 ($45,295 if filing jointly) with two qualifying children
• $35,463 ($40,463 if filing jointly) with one qualifying child
• $13,440 ($18,440 if filing jointly) with no qualifying children

The content of this page is intended for general informational purposes only and is not a substitute for professional financial advice. Contact the IRS or a professional financial adviser for the most up-to-date and complete information regarding state and federal tax law.