2007-03-29 17:54:18 · 5 answers · asked by stepenezy 1 in Business & Finance ➔ Taxes ➔ United States
The difference is the QUALIFICATIONS for dependent credit and earned income credit are different. The taxpayer must met requirements. EIC must have earned income, etc. Dependent credit you must have SSN, each dependent receive $, etc.
Additonal rules if the taxpayer has a qualifying child.
2007-03-29 18:15:42 · answer #1 · answered by Anonymous · 0⤊ 1⤋
When you say dependent credit, do you mean Child Tax Credit? There is a Child Tax Credit that only reduces the amount of taxes that you owe---it is not a refundable credit like Earned Income Credit is. But, there is an Additonal Child Tax Credit that WILL give you a refund if you have 3 or more qualifying children. Earned Income Credit will actually give you a refund as well if you qualify. It is to help out working families and you have to make under$38,000 a year to qualify (if you are married filing jointly). Hope that helps!
2007-03-30 08:26:24 · answer #2 · answered by MarineMom 6 · 0⤊ 0⤋
The child tax credit and the earned income credit have totally different rules, and a person might qualify for both, either one, or neither. Some of the differences:
The child tax credit is $1000 for each eligible child, without a limit on the number of children. It's not refundable, which means that it subtracts from your tax and can take it to zero, but if your credit is higher than your tax liability, you don't get the extra sent to you. While there are income limits to be able to claim the child tax credit, those limits are much higher than the limits to claim EIC.
The EIC doesn't require that you have any children, the amount varies according to your income, filing status, and dependents, and it's refundable which means if the credit is higher than your tax liability, the extra is sent to you.
2007-03-30 10:26:22 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
There is no "dependent credit." The Earned Income Tax Credit is real. That's the primary difference between the two -- one is real and the other isn't.
2007-03-30 04:13:03 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
dependent credit means you have a "minor child" or "older adult" that you pay more than HALF of their living expenses for a year -- earned income credit does not require you to have a minor child and is based on your yearly income
2007-03-30 00:58:57 · answer #5 · answered by mom 2 · 0⤊ 1⤋