Related Information
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The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.
To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return. The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.
The federal adjusted gross income limits for qualifying for the credit for tax year 2008 (which are adjusted annually for inflation) are as follows:
- For married filing jointly with more than one qualifying child, $41,646
For single with more than one qualifying child, $38,646
- For married filing jointly with one qualifying child, $36,995
For single with one qualifying child, $33,995
- For married filing jointly with no qualifying children, $15,880
For single with no qualifying children, $12,880
"Earned income" basically means salary income. A claimant cannot file "married filing separately" and get the EITC. A claimant cannot have investment income in excess of $2950 and get the EITC. A claimant must be between the ages of 25 and 65 and cannot be claimed as a dependent by anyone to qualify for the EITC.
Detailed info on this credit is available on the IRC website, www.irs.gov The Kansas EITC is 17 percent of the federal EITC.