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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11586
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I do not understand about the earned income cfredit on line

Customer Question

i do not understand about the earned income cfredit on line 8a on form 1040 ez
Submitted: 7 months ago.
Category: Tax
Expert:  Lane replied 7 months ago.

Hi Barbara. My names Lane. I can help

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What you'll need to do if you're filing by hand (if you use one of the free efile sites this can be calculated or you) is use the worksheet in the instructions.

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The biggest part of that is looking up the credit on the EIC table on page 17 of the instructions

Customer: replied 7 months ago.
but am I qusalified for eic
Expert:  Lane replied 7 months ago.

By the way IRS can ALSO calculate this for you, To have the IRS figure your EIC: 1. Enter “EIC” in the space to the left of line 8a on Form 1040EZ.

Expert:  Lane replied 7 months ago.

To qualify for and claim the Earned Income Credit you must:

  • Have earned income; and
  • Have been a U.S. citizen or resident alien for the entire tax year; and
  • Have a valid Social Security number (not an ITIN) for yourself, your spouse (if filing jointly), and any qualifying children on your return; and
  • Not have investment income exceeding $3,400; and
  • Not be filing a Form 2555 or 2555-EZ; and
  • File a return with the Single, Married Filing Jointly, Head of Household, or Qualifying Widower filing status, even if you're not required to file a return.

In addition, both your earned income and Adjusted Gross Income (AGI) may not exceed:

  • $14,820 if you're not claiming a qualifying child ($20,330 if filing jointly);
  • $39,131 if you're claiming 1 qualifying child ($44,651 if filing jointly);
  • $44,454 if you're claiming 2 qualifying children ($49,974 if filing jointly);
  • $47,747 if you're claiming 3+ qualifying children ($53,267 if filing jointly).
Expert:  Lane replied 7 months ago.

By the way,

The IRS defines earned income as:

  • Taxable income you earned as an employee, such as wages, salaries, commissions, and tips;
  • Profits from operating your business or farm;
  • Long-term disability pay, if received before the minimum retirement age;
  • Union strike benefits.
Expert:  Lane replied 7 months ago.

Please let me know if you have any questions at all, before rating me.

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And if you DON'T have other questions Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …would be appreciated!

Otherwise I receive no compensation for the work.

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Thank you,

Lane

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I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, a Masters Degree, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986