Earned Income Tax Credit

You may be eligible for a big tax refund of up to $5,000 through the Earned Income Tax Credit (EITC). EITC is a tax credit for individuals and families who work but do not earn high incomes.

To qualify, you need to be a US Citizen or Resident Alien and must have earned income at some point last year from wages, salaries, tips, or self-employment.

EITC Income Guidelines

Income and family size determine the amount of the Federal Earned Income Tax Credit an individual or family may receive. For tax year 2005, to qualify for the credit, a person’s or family’s investment income must be $2,700 or less. In addition, both earned income and adjusted gross income for 2005 must be more than $1 but no more than the amounts listed for each category in the table below.

Income Caps for earned Income Tax Credit – 2005