Earned Income Credit (EIC)
The EIC is designed to offset the burden of Social Security taxes for low-income workers. You can claim this credit even if you have no tax liability.You may qualify for the EIC if your earned income and adjusted gross income are less than:
$12,590 ($14,590 if Married Filing Jointly) with no qualifying children.
$33,241 ($35,241 if Married Filing Jointly) with 1 qualifying child.
$37,783 ($38,348 if Married Filing Jointly) with more than 1 qualifying child.
Child Tax Credit
You can claim $1,000 for each child. This amount decreases once your adjusted gross income (AGI) exceeds the limit. For 2007, the credit begins to phase out when your AGI is more than these limits:
$75,000 if Single, Head of Household or Qualifying Widow(er)
$110,000 if Married Filing Jointly
$55,000 if Married Filing Separately
If your tax is reduced to zero and your earned... [Read Full Article]