1. Additional Child Tax Credit  The earned income threshold generally needed to qualify for the additional child tax credit decreases from $8,500 to $3,000; as a result, more people will qualify for the credit  Lower threshold applies in 2009 and 2010

2. Earned Income Credit  Credit percentage increases from 40% to 45% for families with 3 or more children (maximum credit is now $5,657)  Addition to the phase-out amount for married taxpayers filing jointly increases from $3,120 to $5,000

3. Earned Income Tax Credit (EITC) for Tax Year 2009 No. of ChildrenMaximum CreditEarned Income/ AGI Each Less Than 0$457$13,440* 1$3043$35,463* 2$5028$40,295* 3 or More+$5657$43,281* Taxpayers with investment income of more than $3,100 are not eligible for the credit. *Increase these amounts by $5,000 for joint return filers. And/or by the 30% additional amount for NYS credit.

4. EITC Awareness Day 2010 Friday, January 29, 2010, EITC Awareness Day event organized by IRS and partners to educate the public about EITC and requirements to claim the credit News conferences or news releases to raise awareness of EITC and free tax preparation services Most volunteer return preparation sites will be open by EITC Day More than 60 percent of all EITC tax returns are filed during the month of February

5. E-file and TaxWise® for Volunteers

6. TaxWise (Desktop) 2010 Changes Addition of new User Group – Returns Manager New enforcement for desktop passwords Minimum operating system requirements update Improved release notes in PDF format Sorting Return Explorer in the File List section

7. TaxWise Online 2010 Changes Reports – TWO reports will be improved, similar to the reports available in Tax Wise Desktop “Practice Lab” which works with Link & Learn Taxes and allows access to TaxWise Online Training link from this module to TWO Training to complete practice exercises or prepare returns for certification tests using the current year version of TaxWise

8. Questions?

9. You make a real difference In your community! Thank you!

10. New Rules for Children of Divorced or Separated Parents If custodial parent provides notice of revocation to the non-custodial parent in 2009, the earliest year the revocation can be effective is the tax year beginning in 2010 Part III of Form 8332 may be used for this purpose Must be attached each year the child is claimed as a dependent