The Earned income tax credit could put dollars back in the pockets of many working families in Maryland. Maryland is one of the 20 states that offer earned income tax credit to lower –to- middle income families.  A number of people have failed to claim for the credit in early years because of the qualifications, but because of our economic crisis you might be eligible for the first time. If you have recently loss your job or, your employer has cut your hours last year, this is your chance to file. Eligibility is tied to your income. The qualifications are really not that complex.  The income limits have increased this year and more and more Marylander’s qualify under these circumstances. For instance, if you have two or more dependent children, your earned income and adjusted gross must be less than $38,646, if single and $41,646 if married and filing jointly. If you have one child, income must be less tan $33,995 if single and $36,995 if filing jointly. And if you have no children, the income must be below $12,880 if single and $15,880 for joint filers.
By failing to claim the credit, you could be leaving lots of money on the table. Last year, the federal credit was $2,000.The maximum credit this year is $4,824 for families with two or more children and $2,917 for a family with one child. For singles without children, the maximum credit is $438.
Of course, with everyone counting their pennies these days, it would be nice to get the credit sooner than later. One way to do that is to apply for an advance earned income tax credit. This is for people who expect to qualify in 2009 for a credit and have at least one dependent child. Instead of waiting to claim the money on next year’s return, as much as $1,750 of the credit will be added to your paycheck throughout this year.
To get an advance credit, you must fill out a Form W-5, available through your employer or the IRS. As mentioned earlier the credit is depending on eligibility if you have questions about your eligibility, check EITC Assistant online at www.irs.gov.

Please contact Selena Britton, Public Relations Specialist at sbritton@asfcme67.org with questions or comments.