In this tax tutorial, you will learn about the Earned Income Credit. A tax credit is a dollar-for-dollar reduction of the tax.

The earned income credit is a tax credit for certain people who work and whose earned income and adjusted gross income are under a specified limit.

For 2014, the earned income and adjusted gross income must be less than:

• $46,997 ($52,427 if Married Filing Jointly) with three or more qualifying children
• $43,756 ($49,186 if Married Filing Jointly) with two qualifying children
• $38,511 ($43,941 if Married Filing Jointly) with one qualifying child
• $14,590 ($20,020 if Married Filing Jointly) with no qualifying child

There are many rules that apply to the earned income credit.

At the same adjusted gross income level, taxpayers

• filing a joint return with three or more qualifying children receive the highest earned income credit.
• filing a joint return with no qualifying children receive the lowest earned income credit.

Eligible taxpayers can receive the earned income credit even if their tax is zero.