Earned Income Tax Credit Basics
For the year 2010, the Federal Earned Income Tax Credit or EITC will be adding a new category to their extensive list of qualifying tax filers who may claim this refundable credit. When the amount of the Federal Earned Income Tax Credit or EITC covers any payments that you owe to the IRS. Some tax payers can qualify for almost 5,000.00 dollars in refunds with the Federal Earned Income Tax Credit or EITC.
In previous years, the US Government had a qualifying Federal Earned Income Tax Credit or EITC category for low income people without kids, for people with one child living under their roof for longer than 6 months during the year, and a category for people with 2 or more kids in their care. For tax year 2010, people who have 3 or more kids under their roof for longer than 6 months out of the year can file for a larger credit than previous years.
People with children living in their homes do not have to be the natural parents to the kids. Federal Earned Income Tax Credit or EITC is for qualifying grandparents helping their kids by caring for their offspring, relatives who have taken their siblings kids to help during our hard times, or even an older brother or sister with their younger siblings in their care.
Foster care parents with kids placed into their houses by an approved agency are also eligible to claim a Federal Earned Income Tax Credit or EITC if their charges have lived in their care steadily for longer than 6 months out of the income tax year. Any time that person most closely related to the child. Whenever a question of who is filing comes up, the parent is favored.
Foreign born people working in the United States with a child or children in their home for more than 6 months out of the tax year also normally qualify to take their Federal Earned Income Tax Credit or EITC money. One requirement is that the person claiming this Federal Earned Income Tax Credit or EITC and all children involved must have the valid SS #’s that are required of all workers in the United States. Other Federal Earned Income Tax Credit or EITC rules may also apply to those who are foreign born.