Earned Income Credit Question

[webworm98]

This is not meant to be political. I need some tax information.

 

Some people have already filed EIC and will be getting a refund. My question is if congress passes the increase in EIC will it be retroactive to 2008 or will it apply in 2009.

 

Let say if retroactive, will the irs automatically send you the additional money back or would people have to file an amended return or a special form to get more of it back. Hopefully, they will do it automatically.

 

Does anyone know how much the increase will be if passed? (Percentage)

Edited January 28, 2009 by webworm98

[Seabee]

What EIC increase are you talking about? It's already been raised from 2007 to 2008 for inflation. Is there something else in the works?

[webworm98]

What EIC increase are you talking about? It's already been raised from 2007 to 2008 for inflation. Is there something else in the works?

 

Yes there is something else in the works. If the economic stimulus package round 2 passes. It suppose to raise it some. I do not know how much. I did search google about this. All I could find, it does increase more but does not say how much or if it will be retroactive to 2008 or start in 2009 or what the percentage increase will be. It will obviously be more than just inflation. I suspect if it is retroactive. It will have to be automatically done or you send a form in, then they will figure it out. Most likely it will be on the 2009 taxes and not your 2008 taxes.

[Saria]

Here's a pretty thorough explanation of the proposed changes: http://www.taxpolicycenter.org/taxtopics/r...report/EITC.cfm

It would not be retroactive to 2008.

[webworm98]

Here's a pretty thorough explanation of the proposed changes: http://www.taxpolicycenter.org/taxtopics/r...report/EITC.cfm

It would not be retroactive to 2008.

 

Thank you.

 

 

I am still trying to figure out the percentage. I wish they had an eic sample chart.

 

I wanted to figure out two amounts.

 

Use the current eic chart.

Single person one child on amount of $14,000 now it would be $2,917

Single person one child on amount of $23,700 now it would be $1,641

 

When I try the percentage it goes over the maximum amount. I assume that next year both of those would get the maximum of $3,043

 

I am terrible at math.