Some Families May Qualify for Child Care Tax Credits

Guidelines have been reported for using for the Earned Income Credit, a tax benefit for workers. For those who owe federal income tax, it can reduce or eliminate the tax owed, and some workers can get money back. Even workers who don't owe income tax can qualify.

Eligibility for the credit depends on a family's size and income, using the following guidelines:

• Families with one child, earning less than $33,241 (or $35,241 for married workers) in 2007, are eligible for a credit of up to $2,853.

• Families with two or more children, earning less than $37,783 (or $39,783 for married workers) in 2007, are eligible for a credit of up to $4,716.

• Workers between the ages of 24 and 64 years of age who are not raising a child in their home, who earned less than $12,590 (or $14,590 for married workers) in 2007, are eligible for a credit up to $428.

• If workers earned more than $11,750, families may qualify for the Child Tax Credit up to $1,000 for each dependent child younger than age 17. Tax filers can get more information on tax return forms, and should use Form 8812.

Many families qualify for both the Earned Income Credit and the Child Tax Credit. For more information about these benefits, call the IRS at (800) 829-1040.