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December 12, 2008, Newsletter Issue #312: Earned Income Credit (EIC)
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Tip of the Week
The amount of Earned Income Credit (EIC) you receive depends on how much money you earned last year and whether you have qualifying children. You must have worked full or part-time during the year. You can receive this tax credit regardless of whether you owe any federal income tax or had income tax withheld from your paychecks. You must file a Schedule EIC along with your tax return (Form 1040A or 1040). Example for the year 2000: If your income was under $15,000, you could qualify for a credit of $1988 for one child or $3407 for two children. Makes a nice refund check to spend on those big ticket items you cannot afford otherwise.
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