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EIC Dictionary

An adopted child includes a child placed with the taxpayer for adoption by an authorized placement agency, even if the adoption is not final.

Adjusted Gross Income - a calculation that includes an individual's income minus certain deductions, that is used in calculating the EITC.

An authorized placement agency is an agency of a state or political subdivision of a state, or a tax-exempt organization licensed by a state, an Indian tribal government, or an organization authorized by an Indian tribal government to place Indian children, or a court. 

Taxpayers may be able to claim the EITC on the basis of a child who was kidnapped by a nonfamily member. 

A permanently and totally disabled child has to meet both of the following:
--He or she cannot engage in any substantial gainful activity because of a physical or mental condition.
--A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death.

A child placed with the taxpayer by an authorized placement agency.

A child must meet certain requirements to be a "qualifying child" for the EIC.  There are 4 criteria that must be met: relationship, age, residency and joint return.

  • Relationship: to be a qualifying child, a child must be the filer’s: son, daughter, stepchild, foster child, or a descendant or any of them; or the filer's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
  • Age: a child must be under age 19 at the end of 2010 and younger than the filer (or spouse, if filing jointly), OR under age 24 at the end of 2010 AND a student, AND younger than the filer (or spouse, if filing jointly); OR permanently and totally disabled at any time during 2010, regardless of age.
  • Residency: the child must have lived with the filer in the United States for more than half of 2010.
  • Joint Return: To meet this test, the child cannot file a joint return for the year.

A form that provides information on qualifying children (e.g., names, ages, Social Security numbers). It must be completed and attached to the taxpayer's tax return. 

Temporary Assistance for Needy Families - A welfare benefit that is generally not affected by claiming the EITC.

Tax Counseling for the Elderly - A program run by trained volunteers offering free tax preparation services for individuals 60 years of age or older. 

Volunteer Income Tax Assistance - A program run by trained volunteers offering free tax preparation services for low-income taxpayers. 

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