New EITC Rules for Tax Year 2009
Several important changes affecting the EITC have been adopted since last year. Many Virginians may be eligible for larger credits as a result of these changes.
New for tax year 2009: The amount of EITC has increased for workers with a third qualifying child* and the rules have changed for determining who is a qualifying child.
Earned Income and adjusted gross income (AGI) must each be less than:
- $43,279 ($48,279 married filing jointly) with three or more qualifying children
- $40,295 ($45,295 married filing jointly) with two qualifying children
- $35,463 ($40,463 married filing jointly) with one qualifying child
- $13,440 ($18,440 married filing jointly) with no qualifying children
Tax Year 2009 maximum credit:
$5,657 with three or more qualifying children
$5,028 with two qualifying children
$3,043 with one qualifying child
$457 with no qualifying children
The Fostering Connections to Success and Increasing Adoptions Act of 2008 changed the uniform definition of a child. Now, a “qualifying child” must:
- Be younger than the taxpayer claiming that child unless the child is disabled and
- Not have filed a joint return except to claim a refund
- It also added a new Parent AGI rule. If the same child is a qualifying child of a parent and another relative, the person who is not the parent can claim the child only if their AGI is higher than the AGI of any parent of the child.
*The American Recovery and Reinvestment Act (ARRA) provides a temporary increase in EITC and expands the credit for workers with three or more qualifying children. These changes are temporary and apply to 2009 and 2010 tax years.