Earned Income Tax Credit (EITC)
Earned Income Tax Credit is also known as Earned Income Credit or EITC is United States refundable income tax credit for middle and low incomes people mainly those with children. For the tax year of 2009, an applicant with one qualifying child could get a maximum credit of 3,043 dollars, an applicant with two qualifying children would receive a maximum credit of 5,028 dollars and a claimant three ore more qualifying children could get 5,657 of maximum credit. Siblings, uncles, aunts, and grandparents could also claim a child since their qualifying child given only if they shared residence with the child for 6 months of the tax year. But, in tiebreaker conditions wherein more than one filer or claimer actually claims the same child, priority would be given to the parent. A foster child also included or counts, either if the member of one’s extended family or if officially placed by court or an agency.
There is a much more modest Earned Income Tax Credit for couples and people without children that reaches maximum of 457 dollars. A qualifying child could be as old as the age of eighteen at the end of the tax year, and as old as the age of twenty-three if classified as a full-time student for no less than one long semester. The qualifying child could be any age if considered as totally and permanently disabled, even though this in fact means that the doctor or medical professional has determined that the situation could be expected to last for as a minimum of one year. Now, the Earned Income Tax Credit is one of the biggest anti-poverty tools in the US. Other nations with programs similar to the Earned Income Tax Credit include the Canada, United Kingdom, Ireland, Austria, New Zealand, Belgium, Finland, Denmark, Sweden, Netherlands and France.