My friend sayd that you can carry more than two children this years to get EIC. I told her you can only carry two because I have three and the accountant told me you can only carry two. I have a big wager on this one(plus I am at work so she can see the answers for herself). Who is right me or my friend?? Thanks for you answers!!!!!!!!!!!!!!!!!!!!!!
2007-01-25 06:44:07 · 3 answers · asked by anyaha04 3 in Business & Finance ➔ Taxes ➔ United States
For EIC purposes only the first two children have an affect on the amount of money you get. However each child beyond the 2 still qualify you for Child Tax Credit and their exemption amounts. Enjoy your winnings!
2007-01-25 06:54:11 · answer #1 · answered by misskenzie12 2 · 1⤊ 0⤋
The winner of your bet will be determined by the exact nature of the bet, because it sounds like you are both right, but for different reasons:
........ Your friend is right: you CAN have more than two children and still qualify for the credit
........ You are also right: only the first two children have any bearing on the credit
The IRS links below mention "two or more" TWICE in speaking of the phaseout limit and the maximum credit, but nowhere does it mention a maximum number of children you can have.
So I'll leave it to you two to figure out who won. Good luck, and cheers to good-natured workplace wagers. :-)
2007-01-25 14:49:02 · answer #2 · answered by Anonymous · 2⤊ 0⤋
you are right. you can claim as many dependants as you have on your taxes, and you can have more than 2 qualifying children, but when it comes to filing your only choices are no children, 1 children and 2 or more children.
the only exception is that if you have 6 or more children they have a different way of figuring the credit.
2007-01-25 14:53:37 · answer #3 · answered by Tissa 4 · 0⤊ 2⤋