I lost my EIC! I've gotten $134 too much in Oil & Gas royalties this year, over the $2800 limit.?

Question

I didn't even realize there was a limit, I've never gotten this much before. My AGI is only about $23K and I badly need the EIC; my refund has gone from $2500 (last year) to $200, even carrying my college daughter. I haven't actually filed yet, just got far enough with an efile to be hit with this terrible news. Should I go to a tax preparer or a CPA? And I don't have a 401k, if I started one now would that offset enough to get the EIC? Help!!

Gee, thanks Chris, I really need someone else to kick me, you must be buddies with my ex. Excuse me while I work two jobs, go to school and pay my share to the effing govt. Hand-out my a**, what should I do, say no thanks? Hope your computer crashes and body parts fall off, you jerk.

Answer 1

Oh no! you lost your government handout!!! whatever shall we do!!!

Answer 2

All royalties have limits. There really isn't anything you can do about it. Going to a tax preparer (like Jackson Hewit or that kind of place) is just dumb. You probably know more about taxes than those fools. Going to a CPA will be very expensive and not worth it. Most CPAs charge at least $200 an hour with a 2-3 hour minimum. I work for a CPA firm and our MINIMUM charge for any kind of return is $1000.

Answer 3

401K is employer sponsored plan. Do you even have that option? You can; however, open your own IRA account and make the 2006 contributions until April 16. To do this, and be able to deduct your contributions from your income, (to reduce your Adjusted Gross Income by up to 4000 dollars), you have to meet certain conditions. You should check with someone familier with the tax law to determine this. (one of which is your employer does NOT offer the qualifying pension plans)

Answer 4

Eic is for low income. Try to increase the oil royalties. Sell more oil. Eic is for low income to try to boost them up. Give 10% away, and you will wind up with a surplus.