Do both parents have to work to get Earned Income Credit?

Question

I have stayed home this year to go back to school. I worked last year and got the EIC. I am married. Do I need to go back to work to be able to get a larger EIC? Does it matter on if both parents work or just on the income of the family? There are 5 kids...I usually claim 2 and my husband claims the other 3. We file jointly. Does it make a difference if I work or do not work??

I am asking if I go to work will I get more back on my EIC versus me not working. I know that two children can be claimed? Is that two children per person or 2 per filing claim?

Answer 1

If you filed jointly, then your husband didn't claim 3 children and you claimed 2, and you got EIC. Not if you filed correctly.

There has to be earned income on the tax return for the EIC. It does not have to come from both the taxpayer and the spouse. So file a joint return, which is the only way you can qualify for EIC, based on your joint income.

Answer 2

No, both parents don't have to have earned income to get EIC. EIC amount depends on the total joint earned income amount, and the number of children up to two. You'd still get EIC if your joint income qualifies whether you are working or not. If you go to work, the EIC could increase or decrease depending on the total income for the two of you.

How many kids are claimed on a W-4 doesn't have anything to do with the tax you eventually owe - and if the five kids are all under 17 so you get child tax credits for them, you aren't likely to owe any taxes anyway with an income that qualifies you for EIC, so your refund would be anything withheld for federal taxes, plus EIC, plus most likely something from the additional child tax credit.

Answer 3

One parent can work and still get the earned income credit. By the way based on your family size the max number of children for EIC purposes is two not five. You can get seven personal exemptions.