does buying a home affect your earned income credit?
2006-07-02 15:28:37 · 2 answers · asked by pooh bear 4 in Business & Finance ➔ Taxes ➔ United States
No it doesn't. Earned Income Credit is a tax credit based solely on your earned income such as wages. The only deductions you earn for owning a home occur if you have enough paid in property taxes, state withholding taxes, mortgage interest and charitable contributions. For 2005, the standard deductions were:
Married filing joint and surviving spouse $10,300
Single taxpayers $5,150
Head of household $7,550
So in short, there is no tax benefit to buying a house unless you have more in itemized deduction than these amounts. On the other side, buying a house that is right for you and your family is a great investment.
2006-07-08 07:57:28 · answer #1 · answered by accountant 3 · 1⤊ 0⤋
No. EIC only refers to your income. It doesn't matter what your deductions are.
2006-07-02 23:16:31 · answer #2 · answered by Steve 6 · 0⤊ 0⤋