I’m sure everyone has heard about Earned Income Credit by now. This is a refundable credit, which means that you are eligible to get more back in refund than you paid in throughout the year. Depending on your filing status and the number of dependents you have, you can be eligible for up to $4,824 in earned income credit.
Keep in mind that you are not eligible for EIC if your filing status is married filing separate. Another interesting thing about EIC is that, if you meet the criteria, you may be eligible to get EIC on every paycheck as opposed to waiting until tax time to get this money from the government. For families with three or more children, the maximum Earned Income Tax Credit for 2009 and 2010 rises by $628.50. And the phaseout of the credit for joint filers starts at higher income levels in 2009 and 2010, allowing more of them to claim the credit.
The IRS estimates 20 to 25 percent of people who qualify for the credit do not claim it.