Ask Andy: Earned income tax credit - WMC Action News 5 - Memphis, Tennessee

Ask Andy: Earned income tax credit

By Andy Wise - bio | email

MEMPHIS (WMC TV) - Congress has expanded the Earned Income Tax Credit (EITC) to include families with three or more children and individuals with no children at all.

The EITC provided families with two or more children an average $2,000 last year, according to the IRS. 

This year, Congress boosted the amount of the credit for married couples with three or more children who make less than $48,000 a year.

One qualifying child can earn a maximum of $3,043. Two qualifying children can earn up to a $5,028 deduction. Three or more children:  up to $5,657.

Also, for the first time, individual taxpayers with no children can bite a tiny bit of the EITC.

"If you are a childless worker, the maximum amount of the credit is about $457," said David R. Williams of the IRS. "As you add a kid, the maximum value goes to about $3,000, and as we just described, if you have three or more children, it can be just under $5,700."

For all the qualifying details of the EITC, click here on the IRS web site:

http://www.irs.gov/individuals/article/0,,id=96406,00.html

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