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Earned Income Credit – 2009 Changes

The following paragraphs explain the changes to the credit for 2009.
Amount of credit increased. The maximum amount of the credit has increased. The most you can get for 2009 is:

  • $3,043 if you have one qualifying child,
  • $5,028 if you have two qualifying children,
  • $5,657 if you have three or more qualifying children, or
  • $457 if you do not have a qualifying child.

Earned income amount increased. The maximum amount of income you can earn and still get the credit has increased for 2009. You may be able to take the credit if:

  • You have three or more qualifying children and you earn less than $43,279 ($48,279 if married filing jointly)
  • You have two qualifying children and you earn less than $40,295 ($45,295 if married filing jointly),
  • You have one qualifying child and you earn less than $35,463 ($40,463 if married filing jointly), or
  • You do not have a qualifying child and you earn less than $13,440 ($18,440 if married filing jointly).

The maximum amount of adjusted gross income (AGI) you can have and still get the credit also has increased. You may be able to take the credit if your AGI is less than the amount in the above list that applies to you.
Investment income amount increased.The maximum amount of investment income you can have and still get the credit has increased to $3,100 for 2009.
Advance payment of the credit. If you get advance payments of the credit from your employer with your pay, the total advance payments you get during 2009 can be as much as $1,826.

2010 Changes

The following paragraphs explain the changes to the credit for 2009:
Amount of credit increased. The maximum amount of the credit has increased. The most you can get for 2010 is:

  • $3,050 if you have one qualifying child,
  • $5,036 if you have two qualifying children,
  • $5,666 if you have three or more qualifying children, or
  • $457 if you do not have a qualifying child.

Earned income amount increased. The maximum amount of income you can earn and still get the credit has increased for 2010. You may be able to take the credit if:

  • You have three or more qualifying children and you earn less than $43,352 ($48,362 if married filing jointly),
  • You have two qualifying children and you earn less than $40,363 ($45,373 is married filing jointly),
  • You have one qualifying child and you earn less then $35,535 ($40,545 if married filing jointly), or
  • You do not have a qualifying child and you earn less then $13,460 ($18,470 if married filing jointly).

Investment income amount. The maximum amount of investment income you can have and still get the credit is still $3,100 for 2010.
Advance payment of the credit. If you get the advance payments of the credit from your employer with your pay, the total advance payments you get during 2010 can be as much as $1,830.

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Tax, Accounting, Consulting - Emil Estafanous, CPA, CFF, CGMA