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Dear Tax Talk:
How much is the amount you can make before you don’t get the earned income credit?
There are several limitations on income for the purpose of qualifying for the earned income credit, or EIC. EIC is a tax rebate to certain low-income workers. To qualify for EIC you’ll have to have worked, and your wages, and/or self-employment income and other income have to be below certain limits.
If you do not have a qualifying child, you must be at least age 25 but under age 65 at the end of 2007.
Your investment income must be less than $2,900. Investment income is principally income from interest, dividends, capital gains and net rents. Royalties and passive activity income are also considered investment income.
|Adjusted gross income & earned income must be less than:
The 2007 earned income credit tables begin on Page 44 of
IRS Publication 596. Even if you are not required to file a tax return because of low income, you need to file a return if you want to claim the EIC.
To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Taxpayers should seek professional advice based on their particular circumstances.
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