What is Earned Income Credit?

For 2011, if you have earned income, and have a modified AGI of not more than...

• $13,660 ($18,740 for MFJ) if you have NO qualifying children
  
• $36,052 ($41,132 for MFJ) if you have ONE qualifying child
  
• $40,964 ($46,044 for MFJ) if you have TWO qualifying children
  
• $43,998 ($49,078 for MFJ) if you have THREE OR MORE qualifying children
  

... you may qualify for the Earned Income Credit. This credit is calculated based on the instructions and tables provided in your tax form instructions, and is a refundable credit .. meaning you can receive it back even if you had no taxes withheld and didn't need to file a return! The AGI limits are the same for unmarried individuals or married couples filing jointly; the credit is not available if you are married and filing separately.

A "qualifying child" is generally your son, daughter, grandchild, stepchild or foster child, who was under age 19 at year end (under 24 if a full-time student for at least part of five months of the year). He or she must have lived with you in your home for at least six months of the year, counting temporary absences for school or vacation. If a foster child, he or she must have lived with you all year. A child who is permanently and totally disabled also qualifies, regardless of age.