The earned income credit is generally available to low-income individuals who have at least one child living with them in a U.S. home. Members of the armed services stationed outside the U.S. on extended, active service are still considered to maintain a home in the U.S. for earned income credit purposes.rnThe earned income credit is based on a percentage of the employee's earned income. An eligible employee can claim the credit on the individual income tax return, Form 1040, at the end of the year or the employee may get advance payments with his or her pay.rnThe maximum amount of the credit is adjusted annually for inflation and is reduced by the amount of the individual's liability for the alternative minimum tax. For 2009, the maximum amount that may be advanced is $1,826 and no credit is available to those earning $35,464 ($38,584 if married filing jointly) or more per year.rnCertain employees who do not have a "qualifying child" may be able to claim the earned income credit on their Form 1040. However, they cannot get advance payment of the credit and their credit amount will not be indexed for inflation after 1996.
展开▼
