A family that earns less than the others and for individual who belongs to a lower middle class family, the U.S. government has come up with a nice idea of tax credit which is refundable. It varies from family to family depending on how much they earn and also how many people are dependent on these families.
Earned income tax credit also has a very good feature which is called â€œwithholdingâ€. With this particular feature one can get an amount of money which is more than the sum he has paid while paying their taxes.
If you find this tax credit interesting and want to know whether you are eligible for earning income tax credit or not, you can simply log on to the Internet and go to the ETTC assistance section of the official website of the IRS. Here you will find a section called qualification update which is posted for all the years. You can then choose the year you want and the result will be displayed on your computer screen showing the eligibility of yours. You also have to keep in mind the gross income factor as earned income tax credit takes this factor into consideration as well.
If we take a look at the figure of this year i.e. 2009 the we can see that the maximum credit amount is around $5,028 for families which has two or more kids and qualified for the earned income tax credit; $3,043 for families which has one kid and if your family does not have any kid then the amount drops drastically which is about $457.
To ensure that this tax credit is going to the right individual, the government has made a rule where several tests are performed to check out if the kid is qualifying or not. These tests include relationship, age and residency investigations which is really a very good step taken by the government to make certain that the right candidate gets this earned income tax credit facility.