I usually get earned income credit, but this year I am a couple thousand dollars above the limit. I have lots of deductions and was wondering if this would help. Also want to know if turbo tax is as easy as they make it out to be?
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Can tax deductions help you qualify for earned income credit?
#1 by v b on January 26th, 2012
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No.
EIC is determined by looking up both the amount for your Earned income and the amount for your AGI and you get whichever amount results in the smallest EIC. IF your income is already above the limits, you would get $0.
#2 by Scotty Doesn't Know on January 26th, 2012
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The IRS has a great tool on their website that helps you figure out if you qualify for EITC (also called EIC sometimes). The program hasn’t been updated for the tax year 2007 yet, but will be soon. Here’s the link that will contain the “EITC Assistant” as soon as it’s released:
Also, TurboTax IS as easy as they make it out to be. I was a TurboTax user for many years. Two years ago, I switched to TaxCut by H&R Block. It’s as good (and easy) as TurboTax, but it costs less. You can pick up either at your favorite retailer.
#3 by Judy on January 26th, 2012
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No, deductions don’t help you qualify – it’s your income that matters.
And Turbo Tax is pretty easy if you are careful to enter what they ask for.