Nicholas P. DiNatale, CPA -
Certified Public Accounting & Business Advisory

News and Featured Articles

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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