LI>The earned income credit has been increased, and we are told that banks will loan money on them this year. Remember the child HAS to have lived with you for OVER 6 months. He does not have to be your dependent. You can get the credit for a foster child (stepchild). However, if you receive deferred compensation or other nontaxable interest over $2,350, you will not get the credit. You cannot take it if you file "married filing separately" (or the child care credit, unless the child lived with you). Single mothers: You can't be head of household if your spouse lived with you for any part of the last 6 months of the year.</LI>