is it a certain amount or is it a percentage of earning's
2007-01-07 13:15:42 · 3 answers · asked by batman 2 in Business & Finance ➔ Taxes ➔ United States
(I live in north carolina) but, I guess its a federal thing anyways?
2007-01-07 13:17:04 · update #1
Take your earned income and look it up in the table which is in the booklet here:
http://www.irs.gov/pub/irs-pdf/p596.pdf
For one child the credit can go up to $2,747.
The credit is neither a percentage nor a flat amount. The theory behind the credit is that it is supposed to reimburse you for Social Security and Medicare taxes if you have a child and you have income below certain levels.
2007-01-07 13:19:44 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
You can find a worksheet to calculate earned income credit for your specific information at irs.gov. The exact credit is based on number of children and level of income. This credit is phased out as income increases.
2007-01-07 21:20:54 · answer #2 · answered by Freddie 3 · 0⤊ 0⤋
Max: one child living with one parent - $2,747
Max: one child living with two parents filing jointly - $2,747.
What you actually get depends on your income.
If you qualify, then get free tax assistance. Go to IRS.gov and search for VITA. They will figure it all out for you.
2007-01-07 21:31:19 · answer #3 · answered by MousePotato 2 · 0⤊ 0⤋