The Earned Income Tax Credit (or “EITC”) is a federal program that lets employees who work for low wages get a larger tax refund. The amount of money you can get back through EITC is based on your annual taxable income and the number of children in your household.

Here are the annual earnings maximums for Tax Year 2008:

Individuals: $12,880
Individual with one child: $33,995
Individual with two or more children: $38,646

Married couple: $15,880
Married couple with one child:; $36,995
Married couple with two or more children: $41,646

Credits also change depending on how many children are in the household. The most a person with no children can receive is $438; those with one child can receive up to $2,917; those with two or more children can receive as much as $4,824.

Investment income must be $2,950 or less for the year.

The maximum Advance Earned Income Tax Credit (advance EITC) for TY 2008 the employer is allowed to provide throughout the year with the employee's pay is $1,750.

Do I need to hire someone to figure this out and fill out all the forms?

No!

Here are the places to go for help:

A Volunteer Income Tax Assistance (or “VITA”) program exists to do this. With VITA, certified volunteers prepare returns at no cost for taxpayers of low to moderate income (generally $39,000 and below).   To find a VITA site near you, call the IRS at 1-800-906-9887.

In several areas of Ohio, local coalitions of government and social service representatives are working to help families and individuals see if they qualify for the EITC.  To see if there is an Ohio EITC Coalition in your area, check here.