Earned income credit

EIC is designed to benefit low-income households.  This credit is advantageous because if the credit exceeds your total tax liability, the excess is refunded to you.

You may qualify if any of the following are true:

1.  you have more than two qualifying children and your adjusted gross income (AGI) and earned income for 2011 are less than $43,998 (49,078 if married filing jointly) or

2.  you have TWO qualifying children and your AGI and you earned income for 2011 are less than $40,964 ($46,044 if married filing jointly or

3.  you have one qualifying child and your AGI and your earned income for 2011 are less than $36,052 (41,132 if married filing jointly) or

4.  you have no qualifying children, but your AGI and your earned income for 2011 are less than $13,660 ($18,740) if married filing jointly).

2012 IRS e-file Refund Cycle Chart                  

       IRS accepts returns between               Direct Deposit Sent:  

Feb 2 - Feb 8, 2012                       Feb 15, 2012

  

Qualifiying child

A qualifying child must satisfy all six of the following tests:

1.  Relationship:  The child must be the taxpayer's child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these.

2.  Age:  The child must be:

  a.  under the age of 19 at the end of the year and younger than you (or your spouse, if filing jointly),

   b.  under the age of 24 at the end of the year, a full-time student for at least five months of the year and younger than you (or your spouse, if filing jointly, or

   c.  any age if permanently and totally disabled at any time during the year. 

3.  Residence:  The child must have the same principal residence as the taxpayer for more than half the year.  Exceptions apply in certain circumstances for  children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.

4.  Support:  The child must not provide more that one-half of his or her own support for the year.

5.  Filing Status:  The child is not filing a jont return for the year (unless that return is filed only as a claim for a refund).

6.  Tie-breaker rules:  The child must only qualify as your qualifying child or if the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child based on the tie-breaker rules. 

Child Tax Credit

The taxpayer may be able to take the child tax credit if he or she has at least one qualifying child.  A qualifying child is one who:

1.  was under age 17 at the end of 2011,

2.  is the taxpayer's son, daughter, adopted child, grandchild, stepchild, brother, sister, niece, nephew, or foster child,

3.  is younger than the taxpayer or spouse, if filing jointly

4.  has the same principal residence as the taxpayer for more than half the year (exceptions apply for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year)

5.  has not provided over half his or her own support

6.  is a U S citizen, U S national or resident alien and

7.  is claimed as a dependent in 2011.