Who qualifies for the Earned Income Credit (EIC) and what are the amounts for 2007?
This is a refundable credit paid to certain low income taxpayers who qualify for and claim the federal Earned Income Credit allowed under the Internal Revenue Code. You may claim the credit even though you do not owe any taxes nor have any income taxes withheld from your pay. To receive the credit, you must file a tax return and claim the credit. For tax years beginning on or after 2001, this refundable Massachusetts credit is 15 percent of the federal credit. The IRS provides an Earned Income Credit table based on the credit available for modified adjusted gross income. The maximum credit allowed is 1) $64.20 with no qualifying children; 2) $427.95 with one qualifying child; and 3) $707.40 with two or more qualifying children. Additional information is available in the Form 1 and Form 1-NR/PYInstructions. A more in-depth explanation of the Earned Income Credit is available in the Guide to Taxes.
