In Texas, what does the tax law state require for 2008?

Question

I'm a single mother of an 9 year old and babysat a few children during the year of 2007. Can I claim the earnings from that in order to recieve EITC? If I can how much do I need to have made in order to get the credit?

I didn't make alot babysitting. I am a student as well. Can I still claim EITC if I don't put my the little bit I made and put no income? I only made a couple of hundred .

Answer 1

There is no state income tax on wages and salaries in Texas.

Remember, if you report your baby sitting fees to the IRS, you will also have to pay taxes on those earnings.

Earned Income Tax Credit is just that, a credit on earned income. If you did not have any earned income, you do not qualify for the EITC.

Answer 2

You are REQUIRED to file and pay any taxes due if you earned more than $400 from self-employment.

Be advised that due to the EIC, the IRS takes a VERY close look at returns with very low income and large EIC claims. The EIC typically is more than any tax that would be due on the income resulting in a net refund to the taxpayer.

They have been auditing a LOT of these returns and a fair number of folks in your situation waited many months for the audits to complete and get their refunds. And more than just a few were caught out in fraudulent EIC claims resulting in a 10 year bar on claiming the EIC. Make SURE that you keep meticulous records as an IRS audit is statistically quite likely.

Answer 3

As long as you are reporting all the income from the babysitting job. In turn you need to provide you SS# or tax ID# to the parents of the children you were watching so they can claim that as well. You can go to IRS.gov to see how much you have to make in order to claim EITC.

Answer 4

I assume that the state will send the forms to you, if you filed with them last year. In a lot of states, you can also pick them up at a bank, credit union, or library. The answers should be in the instructions.