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Thread: Tax Child Credit / EIC
11-03-2008, 01:22 AM #1
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Tax Child Credit / EIC
I do not know anything about the EIC and other tax credits for children and really do not understand much of what I am reading when I go to the IRS site. Here is our situation:
My husband is retired and receives a pension. There are federal and state taxes deducted from the check. Gross of his check is right around $2k per month. Neither of us are employed.
Our adoption just went through this past week and we now have a "dependent".
I guess my question is, would be be able to get the Earned Income Credit and / or the different child credits when we have our taxes done this spring? Or would one of have to be employed to be able to qualify for this? Would we benefit (for this) by one of us going out and getting a part time job?
When dh was working and we had our older children as dependents, we did not qualify for any of this kind of stuff and so I do not know anything about it.
11-03-2008, 02:21 AM #2
Go to IRS.gov and type earned income credit into the search. They have a handy dandy calculator. They don't have tax year 2008 posted yet though but you could see what you would get in tax year 2007.
I am on SSDI, I didn't qualify for it because I didn't have any "income". The little job I had was tips only and that didn't count.
11-03-2008, 07:40 AM #3
Do they actually take taxes from the check i.e., you see the deduction or is your gross and net the same thing. My husband is on federal workers comp and they adjust his payment at 20% less automatically so we can't file taxes on them.
The other thing, is as far as dependents they usually have to have lived with you for 6 months of the year you are filing taxes on. So if the child is just now moving in with you, he/she will have only lived with you for 2 months of 2008.
By the congrats!!
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11-03-2008, 08:50 AM #4
I got this from the IRS site, but you may want to check into it more:
"The EITC is a credit for certain people who work. You (and your spouse, if you are filing a joint return) and any qualifying children listed on Schedule EIC need valid social security numbers."
This may also help with your questions:
11-03-2008, 10:30 AM #5
If you have a tuff time with the website get a books that come out with the forms at the first of the year, the 1040's all have a work sheet in them that tell you if you are able to take the credit. Its easy to fill out and leads you step by step to see if you can take the credit!
Always check out the free tax books and forms that come with all the tax books that come out the first of the year, you don't always have to even have a child to get the EIC, there are new rules for this stuff every year. You should also get a break on the adoptions costs, they often let you claim many of your costs with this. Check it out, it is well worth it!
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