2007-12-03 04:41:14 · 4 answers · asked by misty g 1 in Business & Finance ➔ Taxes ➔ United States
Earned Income Credit is determined after gross pay has been adjusted.
2007-12-03 04:44:32 · answer #1 · answered by Gary 5 · 0⤊ 0⤋
EIC is calculated twice. Once using your earned income and once using the adjusted gross income (the bottom line on page one of a 1040a or a 1040). If one shows $2000 and the other shows $1000, the EIC will be limited to $1000.
If you are self-employed, the EIC is calculated on the SE income after the 1/2 of SE tax is subtracted.
2007-12-03 05:14:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The Earned Income Credit is figured on your earned income before exemptions and deductions are subtracted, if that's what you are asking.
2007-12-03 05:09:30 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
_Gross Income
Adjustments(Student loan expense, Educator's expense...)
=AGI (Adjusted Gross Income)
- Taxes and Credits
=Taxable Income
- EIC (Earned Income Credit)
2007-12-03 05:14:42 · answer #4 · answered by Q 3 · 0⤊ 0⤋