The earned income credit is a tax break aimed at the working poor, especially working families with children. This year, the income limits have been raised, making it easier to qualify. Everyone with an income below a certain level can claim the earned income credit. There are several tricks to it, however. You have to have earned income, and there are rules on that.
Married people filing separately are ineligible.
And in some cases, a taxpayer can opt to receive the credit throughout the year as an addition to his or her paycheck instead of waiting to receive it as a tax refund. The table and paragraphs below will help provide the basics of the earned income tax credit. The amount you can earn and still receive the credit has increased for 1999. Lived with you in the United States for more than half of 1999, or lived with you during all of 1999 if the child is your eligible foster child. The maximum amount of investment income a taxpayer can have and qualify for the credit has increased for 1999.