Brady and Associates, LLC

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Individual Tax Credits

A qualifying child for purposes of the child tax credit must be all of the following:

1. Claimed as your dependent on form 1040 or 1040A

2. Under age 17 at the end of 2006

3. Your son, daughter, adopted child, stepchild or a descendant of any of them, your brother, sister, stepbrother, stepsister, or a descendant of any of them, or a foster child

4. A US Citizen

 

Child Tax Credit

Earned Income Credit

For 2009 the EIC percentage for families with three or more qualifying children is increased t 45% (maximum $5,656)

In order to qualify for the earned income credit you must meet the following criteria:

1. Your AGI must be less than $37,783 ($43,415 married filing joint) with more than one qualifying child; $33,241 ($38,583 for married filing joint ) if you have one qualifying child, $12,590 ($16,560 for married filing joint) if you do not have a qualifying child.

2. You must have a valid social security number.

3. Your filing status cannot be “married filing separate.”

4. You must be a U.S. citizen or resident alien all year.

5. You cannot file form 2555 for Form 2555-EZ (relating to foreign earned income)

6. Your investment income must be $2,900 or less

7. You must have earned income

8. Your child must meet the relationship, age, and residency tests, cannot be used by more than one person to claim the EIC and cannot be a qualifying child of another person.

9. If you do not have a qualifying child, you must be at least 25 but under 65, you cannot be the dependent or qualifying child of another person,  you must have lived in the United States more than half of the year.

Below are brief descriptions of the Child Tax Credit and the Earned Income Credit