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Earned Income Tax Credit available for military members

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  • By 36th Wing Legal Office
The Earned Income Tax Credit, sometimes called the Earned Income Credit, is a refundable federal income tax credit for low-income working individuals and families.
When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. 

The EITC is for certain people who work and have earned income under $38,348. It usually means more money in tax payers' pockets and it may also give you a refund. The maximum amount of income tax payers can earn and still get EITC has increased in 2006. Tax payers may qualify if they fall under one of the following categories: 

The tax payer has more than one qualifying child and has earned less than $36,348 ($38,348 if married and filing jointly) 

Tax payers with one qualifying child and has earned less than $32,001 ($34,001 if married and filing jointly) 

A tax payer who does not have a qualifying child and has earned less than $12,120 ($14,120 if married and filing jointly) 

Tax payers cannot claim EITC if they did not earn income in the taxable year. Some may think this would cause problems for those whose only earned income was nontaxable combat pay. However, tax laws have carved out a special exception for those who have combat pay excluded from their gross income. Tax payers may elect to have nontaxable combat pay included in earned income for EITC purposes only in order to qualify to receive the credit. 

The Andersen Tax Center (located in building 21000, next to the Bank of Guam) can help tax payers with claiming EITC as well as many other tax issues. Call 366-4829 for an appointment. 

For additional information, please visit the IRS website at www.irs.gov/individuals/military/index.html.

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