what are the min and max amount of wages do i have to make for full earned income credit?

Question

I am in Florida and I am claiming 3 kids.

I am filing Married filing jointly

Answer 1

That depends upon your filing status. If your filing status is Single, Head of Household, or Qualifying Widow(er) you max out the EIC (at $4,356) between $11,300 and $14,850. If you're filing status is Married Filing Separately, it's between $11,300 and $16,850. These are the 2006 numbers; I don't have them for 2007 at the moment.

A couple of side notes:

1. The EIC caps out with 2 children. You get nothing extra for the 3rd.

2. The IRS watches EIC claims VERY closely these days. A taxpayer who files a return indicating Self-Employment income that results in any EIC payment is HIGHLY likely to be audited. There has been extensive EIC fraud over the past few years and the IRS is playing hardball on it now. I wouldn't be surprised to see some prosecutions coming in the next few months.

P.S. Ignore the silly rant about the so-called "Fair Tax." It has nothing to do with your situation and thankfully will NEVER see the light of day. It has languished in committee for over a decade now, for good reason.

Answer 2

The EIC is neither earned nor is it a credit.

Of course all this will be moot when the FairTax Act H.R. 25 passes and replaces all income taxes with a single sales tax on new items. The FairTax now has the support of hundreds of thousands, 72 congressional sponsors / co-sponsors, and 7 presidential candidates. See www.fairtax.org
Fundamentals and facts http://www.fairtax.org/PDF/FairTax-Fundamentals_and_facts-070122.pdf
Frequently Asked Questions about the FairTax http://www.fairtax.org/site/PageServer?pagename=about_faq

You will be able to collect the "Prebate"