2007-02-15 16:07:26 · 6 answers · asked by bob 1 in Business & Finance ➔ Taxes ➔ United States
Sounds like someone is trying to max out earned income credit.
2007-02-15 16:16:23 · answer #1 · answered by xtowgrunt 6 · 0⤊ 0⤋
You have to report all taxable income, so it's irrelevant. While you may pay less tax if your income is low, you'll have less money to spend as well.
You'll always do better overall with a higher income. You might pay higher taxes, but you'll still have more money at the end of the day.
2007-02-16 06:29:50 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
II am not sure what your "situation" is. The IRS doesn't really care. Each individual, family, company, corporation, etc. is required (responsible) to file a Federal and state tax return. The Federal Government or your local state government doesn't really care what method you use.
Read the Federal and your state tax-return laws and try to determine what is best for you. Ignorance of the law does not excuse your mistakes!
2007-02-16 00:29:05 · answer #3 · answered by Baby Poots 6 · 0⤊ 0⤋
Lower the income and get EIC, but be careful, if your caught you have to pay it back with intrest and you may not be able to claim EIC for years.
2007-02-16 08:07:38 · answer #4 · answered by mrfoxhorn 5 · 0⤊ 0⤋
you need to show every penny you and your spouse made on that return. from work, from interest, and so on. your employer and banks send this info to the IRS, but it takes a while to cross match it. so 2 years from now, you will get a letter from the IRS, and you will have to pay the piper. not to mention, to begin to even get away with it, you would have to falsify the records you submit, like W-2's. pay now, or set up a payment plan. time in prison isn't worth it.
2007-02-16 03:20:55 · answer #5 · answered by Jen 5 · 0⤊ 1⤋
well, i don't think you really have a choice. you show your income - you can't decide whether its high or low
2007-02-16 00:10:33 · answer #6 · answered by T D 3 · 0⤊ 0⤋