Earned Income Credit Cheat Sheet
Qualification: Low- to moderate-income workers may be eligible for a refundable earned income tax credit
(“EITC”) that is determined by the a) the number of qualifying children and b) adjusted gross income and
earned income.
A) Must meet ALL of these rules
1.
2.
3.
4.
5.
6.
Must have valid Social Security Number;
Filing status CANNOT be married filing separately;
Must be a US citizen or resident alien all year;
Cannot have foreign earned income (Form 2555);
Investment income must be $2,950 (2008);
Must have earned income1 as stated below.
B) Must meet ONE of these qualifications
If there are 2 or more
If there is one qualifying
qualifying children, then the child, then the Adjusted
Adjusted Gross Income
Gross Income must be less
(Form 1040, line 37) must
than $33,995 ($36,995 if
be less than $38,646
married filing jointly).
($41,646 if married filing
jointly).
$3221/mo.
$2,833/mo.
$3471/mo. (married)
$3,081/mo. (married)
C) Rules for ONE OR MORE QUALIFYING
CHILD(REN)
1) Child is a qualifying child who was:
a) Son, daughter, stepchild, foster child, brother,
sister, stepsister, or a descendant of any of them; and
b)Under age 192 at end of the year OR under age 24
and a full-time student OR any age and permanently
and totally disabled; and
c) Lived in the parent’s household for more than half
of the year.
2) Child is not claimed by anyone else for EITC;
3) Person claiming EITC is not a qualifying child of
another person also claiming EITC.
1
If there is no qualifying child,
then the Adjusted Gross Income
must be less than $12,880
($15,880 if married filing jointly).
$1,073/mo.
$1,323/mo. (married)
C) Rules if there is no qualifying
child
1) Person claiming credit must be
at least age 25 but less than 65;3
2) Cannot be the dependent of
another person;
3) Cannot be a qualifying child of
another person;
4) Must have lived in the US for
more than half of the year.
Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Employee
pay is earned income only if it is taxable. Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is
not earned income. Income from pensions, social security, worker's compensation, interest and dividends, unemployment benefits,
child support and alimony, nontaxable workfare payments, income earned while an inmate in prison are not considered to be earned
income. See IRS Publication 596.
2
For tax year 2009, the qualifying child must be younger than the parent claiming the credit. IRS 2009 Form W-5 Instructions.
3
Advance Earned Income Tax Credit box should be unchecked when the parent is younger than 25 and older than 65 and has no
qualifying child.
Created by Orsolya F. Sabado
CSSD LA County
Child Tax Credit4 Cheat Sheet
The Child Tax Credit may be claimed in addition to the Child Care Credit and the Earned Income Credit. A
qualifying child for purposes of the child tax credit is a child who:
1) Is the parent’s son, daughter, stepchild, foster child, brother, sister, stepbrother,
stepsister, or a descendant of any of them (for example, your grandchild, niece, or
nephew); and
2) Was under age 17 at the end of the tax year; and
3) Did not provide over half of his or her own support for the year; and
4) Lived with the parent for more than half of the year (except in cases of divorced or
separated children IF the custodial parent signs a statement regarding not claiming the
child on his/her tax return); and
5) Was a U.S. citizen, a U.S. national, or a U.S. resident alien.
Child Care Credit Cheat Sheet5
1) Parent actually pays someone to care for his/her child; and
2) The child care expenses are necessary for the parent to work (but child care
expenses incurred so that the parent can get an education are not included); and
3) The child is under the age of 13;6 and
4) The parent had earned income.7
NOTE: The Guideline calculator will not give the child care credit unless there is a corresponding child care
amount entered under the “add-on” section.
4
See Publication 972 regarding details of the credit, including qualifying an adopted child.
IRS Publication 503; IRC § 21.
6
The portion of the child care expenses incurred during the tax year in which the child turn 13 may be claimed up to the child’s 13th
birthday. See IRS Publication 503; IRC § 21.
7
Please see the definition of earned income in footnote 1 above. Full-time or part-time work will qualify as does a parent actively
looking for work. However, there must be earned income for the tax year in order to be able to take the credit. IRS Publication 503.
5
Created by Orsolya F. Sabado
CSSD LA County