Hi i'm Married with a 1 yr old son, hes lived with me for 12 months and I make 17.5k a year Would i qualify for EIC (earned income credit)?? I really am not sure what it is, but it seems to be alot of extra money, but is it like a loan...or just like a tax break?? Somebody please explain this to me.
THANKS
2007-01-22 18:50:31 · 6 answers · asked by dandcgrounds 2 in Business & Finance ➔ Taxes ➔ United States
Since you're married, the question is how much do you and your spouse make together, not just how much you make. The total income on the joint return is what determines whether you get the EIC. If you file as married filing separately, you are not eligible for EIC.
If the $17.5K is your total income between you and your spouse, with one child you'd get an EIC of around $2633. If you don't owe that much tax, you'd get the rest refunded to you. It isn't a loan, it's a tax break that's given to low-income working people - and with kids, the income limit is higher and the credit is more.
2007-01-23 02:59:11 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Does the other parent have any income? You must file jointly with the other to get the Earned Income Credit, or if not living with your spouse for the last six months of 2006, you may be able to file as Head of Household if you pay over half the costs of maintaining your home.
Your joint income if filing a joint return has to be below about $36,000, and you can't have much investment income or that disqualifies you too.
The EIC originated as a credit to encourage people with children to work. It originally was designed to reimburse working people for their payroll taxes (Social Security and Medicare) even if those taxpayers did not owe income tax.
2007-01-23 03:08:13 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Based upon the numbers you provided, yes you would qualify for the Earned Income Credit. Quite simply the Earned Income Credit is gift from the government because your income is below the defined proverty level. It is not a loan and will result in you getting a refund for taxes you never paid....What a country!
2007-01-23 06:55:36 · answer #3 · answered by wph00 4 · 0⤊ 1⤋
EIC is a government handout for poor people.....you may qualify but since you are married, it will depend on your husband's salary. You cannot file seperately and both claim EIC.
2007-01-23 03:05:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
it like a credit. its a gift to you from the government. the IRS has a handy EIC assistant on the web. you can plug your husbands and your info into it, it will tell you if you are eligible for, and if so, for how much.
it takes about 5 minutes if you have your financials handy
http://apps.irs.gov/app/eitc2006/SetLanguage.do?lang=en
2007-01-23 04:07:58 · answer #5 · answered by Jen 5 · 0⤊ 0⤋
yes, u will qaulify for EIC. EIC is refund credit ( cash back)
2007-01-23 03:00:31 · answer #6 · answered by tax pro 1 · 0⤊ 1⤋