Tax Credits

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Written and Reviewed by Experts: This article was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language.

Earned Income Credit (EIC)
The EIC is designed to offset the burden of Social Security taxes for low-income workers. You can claim this tax 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:

$12,880 ($15,880 if Married Filing Jointly) with no qualifying children.
$33,995 ($36,995 if Married Filing Jointly) with 1 qualifying child.
$38,646 ($41,646 if Married Filing Jointly) with more than 1 qualifying child.

Child Tax Credit
You can claim $1,000 for each child. The 2008 Child Tax 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 income tax is reduced to zero and your earned income is more than $8,500 (for 2008), you may be eligible to claim the Child Tax Credit.

Saver's Credit
You could get a tax credit for up to half of what you contribute to a qualified retirement plan or IRA. Claim the Saver's Credit if you meet all the qualifications:

You're age 18 or older.
You aren't a full-time student.
You aren't claimed as a dependent on someone else's return.
Your AGI doesn't exceed $26,500 ($53,000 if Married Filing Jointly, or $39,750 for Head of Household).

AMT Credit
If you were subject to the AMT in a prior year and you're not subject to the AMT this year, you may be eligible to claim the minimum tax credit. Up to 50% of the amount carried to 2008 from years before 2006 may be refundable.

Claiming Overpaid Taxes
If you're eligible for any of the above tax credits, the IRS allows you to reclaim your lost money by filing an amended tax return for prior years. However, you can file an amended return only for up to the past 3 years.

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Please note: This page offers general legal information, not but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.

Written and Reviewed by Experts: This article was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language.

At Rocket Lawyer, we believe legal information should be both reliable and easy to understand—so you don't need a law degree to feel informed. We follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible.

About this page:

This article was written and reviewed by Rocket Lawyer editorial staff
This article was last reviewed or updated on Sep 23, 2022

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