Preview of Tax Year 2009
2009 EITC ARRA Changes and Inflation Adjustments
The American Recovery and Reinvestment Act (ARRA) provides a temporary increase in the earned income tax credit (EITC) for taxpayers with three or more qualifying children. The maximum EITC for this new category is $5,657. ARRA also increases the beginning point of the phase-out range for the credit for all married couples filing a joint return, regardless of the number of children. These changes apply to 2009 and 2010 tax returns.
The credit begins to phase out at $21,420 for married taxpayers filing a joint return with children and completely phases out at $40,463 for one child, $45,295 for two children and $48,279 for three or more children. For married taxpayers filing a joint return with no children, the credit begins to phase out at $12,470 and completely phases out at $18,440.
The threshold amounts for 2009 tax returns follow:
- $13,440 ($18,440 if married filing joint) if you do not have a qualifying child
- $35,463 ($40,463 married filing jointly) if you have one qualifying child
- $40,295 ($45,295 married filing jointly) if you have two qualifying children
- $43,279 ($48,279 married filing jointly) if you have three or more qualifying children
The maximum EITC for 2009:
- $5,657 with three or more qualifying children
- $5,028 with two qualifying children
- $3,043 with one qualifying child
- $457 with no qualifying children
Investment income must be $3,100 or less for the year.
The maximum amount of Advance EITC workers can receive from their employers is $1,826.
See irs.gov for the maximum income and credit amounts for 2008, 2007, 2006 and 2005.
07/02/2009