IRS Releases Inflationary Increases for EITC, LLC Limits
Annual adjustments for several key credits, exemptions and deductions have been released for the upcoming 2011 tax filing season. Full details are available on the IRS website (IRS.gov).
Annual IRS adjustments to several credits for the coming tax filing season will push amounts slightly higher this year. For low- and moderate-income families, many will see small increases of approximately 1.5 percent in their maximum EITC claims. The top credit limit is increased for the new year to $5,751 for a family with 3 or more children, a small adjustment upward from last year’s $5,666. The maximum income limit for the EITC has also increased to $49,078 from $48,362 for married couples filing jointly with three or more children.
Income limits for the Lifetime Learning Credit (LLC) will also see a slight bump upward. Students will now be eligible for the LLC with incomes up to $51,000 for single and head of household filers ($102,000 for married couples filing jointly).
For more information on this year’s adjustments, including increases in the personal exemption and standard deductions, please see details posted in IRS Revenue Procedure 2011-12.
By Holden Weisman, Policy Analyst