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Low-Income taxpayers running behind on bills like utilities or rent or just wanting to save up a little money should know about the Earned Income Credit. To claim this credit, taxpayers must have a social security card that is valid for employment.

How Much Can I Get from the Earned Income Credit or other credits?

• Families with one child who earn less than $35,463 in 2009 (or less than $40,463 for married filing jointly status) are eligible for a credit of up to $3,043.
• Families with two children who earn less than $40,295 in 2009 (or less than $45,295 for married filing jointly status) are eligible for a credit of up to $5,028.
• Families with three or more children who earn less than $43,279 in 2009 (or less than $48,279 for married filing jointly status) are eligible for a credit of up to $5,657.
• Workers without a qualifying child who earn less than $13,440 in 2009 (or less than $18,440 for married filing jointly status) are eligible for a credit of up to $457.
• Investment Income Limit = $3,100.

OTHER IMPORTANT CREDITS...Child Tax Credit = up to $1,000 per child under age 17. Workers must earn over $3,000 in 2009 to qualify for the refundable Additional Child Tax Credit.

What Children Qualify for the EIC?
Qualifying children are sons/daughters, sisters/brothers, stepchildren and siblings, grandchildren and adopted children as long as they lived with you for more than six months in 2009. Foster children who are placed with you more than six months of the year by an authorized government or private placement agency also qualify.

The children must be under age 19, or under age 24 if they are full-time students. Totally and permanently disabled children of any age also qualify. All qualifying children need to have a social security number valid for employment.

New Rules for EIC: Your qualifying child must be younger than you. If both you and the parents of the child can claim the same qualifying child, you can not claim him/her unless your Adjusted Gross Income (AGI) is higher than that of the parent with the highest AGI.

How do I get help filing my tax return?
Dial 211. 211 has the schedule for the majority of free tax preparation sites in Iowa. Most sites offer electronic filing. E-filing with direct deposit is the fastest way to get your refund. You can get it in as little as 10-15 days.

Things you Should Know about Refund Anticipation Loans.
You should carefully consider whether or not to take out a refund anticipation loan. These loans can be costly and they may only get you your money a few days faster. Unless you are in a dire emergency, these tax refund loans are really a bad financial choice. The $75 to $150 in interest and application fees is money better put into an emergency fund, toward a high interest credit card or loan, or payment of other bills this winter.

Where Can I Get Help if I have a Tax Problem or have a question about this article?
You may be able to get help from Iowa Legal Aid's Low-Income Taxpayer Clinic. Call Iowa Legal Aid at 1-800-532-1275 to be connected with the office serving your community.

This information is not Legal Advice. It is not meant to fully explain topics. Do not assume what you read in this article applies to your specific case. See a lawyer to get complete, correct, and up-to-date legal advice. The information in this article was not intended or written to be used and cannot be used to avoid penalties under the Internal Revenue Code.