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Change in Rules
for Eligibility for Earned Income and Child Tax Credits
Beginning in tax year 2000, there is a change in the
rules for eligibility for the child tax credit and the Earned Income
Tax Credit (EITC). The change effects taxpayers who use unrelated "foster"
children to qualify for these credits. Under previous rules, a taxpayer
could qualify for either credit if they had a child who lived with them
for the entire year whom they cared for as they would their own child.
No blood relationship was required. However, beginning in tax year 2000,
a foster child for the purposes of the EITC or child tax credit is limited
to the taxpayer's brother, sister, stepbrother or stepsister (or a descendant
of any of those persons) or to a child placed with the taxpayer by an
authorized placement agency. All other existing requirements for the
credits continue to apply. Tax professionals who want further information
can refer to IRS Publication 553, Highlights of 1999 Tax Law Changes.
To receive posters in English or Spanish that explain the above change
or for other information on the EITC, contact Carol Embriano, EITC Coordinator
for New England, at (617) 316-2507.
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