Earned Income

• Earned income includes wages, salary, tips, union strike benefits, long-term disability payments and self-employment income. Types of income not considered earned income are interest and dividends, unemployment benefits, alimony, child support, pensions and Social Security payments.
  
  

Qualifying Child

• A qualifying child is your son, daughter, stepchild, grandchild, brother, sister, foster child, niece or nephew. The child must be aged 19 or younger (24 or younger if a student). A child of any age who is permanently disabled is eligible. The child cannot file a joint return and must have lived in the United States for half of the year, for the year you are filing.
  
  

Income Limits

• As of 2010, to qualify, your earned income and adjusted gross income must be less than $13,460 for a single person with no qualifying children or $48,362 for a married couple, filing jointly, with three or more children.
  
  

Maximum Credit

• The maximum credit for 2010 is $457 if you have no qualifying children. The limit for three or more qualifying children is $5,666.