I am right below the maximum cut-off point for the earned income credit. I am wondering if I do freelance work and up my income by say, 3,000, am I just wasting my time because I will no longer qualify for that credit? In other words, am I just working next year's refund away?
I am a single mom with two dependents.
2007-02-28 13:50:03 · 3 answers · asked by mizchulita 3 in Business & Finance ➔ Taxes ➔ United States
If your income is such that an increase of $3,000 will disqualify you from the EIC, then the EIC that you would receive be only $300 or so. You can check this fact in the tables in IRS Pub 596:
http://www.irs.gov/pub/irs-pdf/p536.pdf
Not too many people would forgo $3,000 in income in order to keep a $300 credit.
2007-02-28 14:45:35 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
If you are just below the maximum cutoff point, you won't get much in EIC anyway, so no, you're not just wasting your time by working more. Even at a couple thousand below the upper limit with two kids, your EIC would be around $400, more like $200 if you're $1000 below the max.
2007-02-28 23:50:26 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
you have children?
if so, i think you should work harder for your children.
ok?
2007-02-28 21:55:58 · answer #3 · answered by daryl016 2 · 0⤊ 4⤋