The Earned Income Credit: Do You Qualify?
 

If you worked full-time or part-time during 2006, and you had a low to moderate income, you may qualify for the Earned Income Credit (EIC). You may also receive the Child Tax Credit (CTC) if you had children living with you for at least half of the year.  If you qualify, you’ll owe less in taxes and may even get cash back.  Also, some people who don’t owe taxes can get the Earned Income Credit.  However, to get these credits, you must file a tax return.
 

Amounts that each person will receive will vary with their income and circumstances.  However, here are some figures for the maximum amount that some workers can receive for the Earned Income Credit:
  If you lived with one child in your home in 2006 and your family earned less than $32,001 (or $34,001 for married workers), you can get up to $2,747.
   
  If you lived with two or more children in 2006 and your family earned less than $36,348 (or $38, 348 for married workers), you can get up to $4,536.
   
  If you had no children living with you, and you earned less than $12,120 (or $14,120 for married workers) and you were between the ages of 25 and 64, you can get up to $412.
 

If you are married, the income limits are $2,000 higher than those for single taxpayers, as indicated in the amounts stated above.  Many married workers may get a larger EIC.  To get the EIC you must file a form 1040 or 1040A and, if you had a qualifying child in your home, you must fill out and attach schedule EIC.  A correct name and Social Security number must be provided for every person listed on the tax return and Schedule EIC.
 

In addition to the EIC, you may also qualify for the Child Tax Credit if you were raising a child in your home for at least six months during 2006.  The single or married worker must have a taxable earned income above $11,300.  The child must live with the worker in the U.S., and be under age 17.   Parents of full-time college students under the age of 24 (or students of any age who have total and permanent disabilities) may also be able to claim the EIC.  The child must be either a citizen or resident alien and must also have either a valid Social Security number or an Individual Taxpayer Identification number (ITIN).  Qualifying children can include:
 
  Sons, daughters, stepchildren, grandchildren, and adopted children
  Brothers, sisters, stepbrothers, or stepsisters—as well as descendents of such relatives
  Foster children who are placed with the worker by an authorized government or private placement agency.
 
To claim the Child Tax Credit, you will need to file Form 8812 as well as form 1040 or 1040A.  You may need assistance in filling out this form. 
 
You can get help in filling out your tax forms at VITA (Volunteer Income Tax Assistance) sites that are available in many communities.  IRS certified volunteers prepare taxes free of charge.  For a site near you, call 1-800- 829-1040.   Avoid “rapid anticipation loans” which are quite costly. If a VITA site is not located in your county or close by, seek tax preparers that charge low or minimal fees.  This will allow you to keep most of your return.