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cheryllaundre
New Member

How much money do you need to earn on the books in order to receive EIC

 
1 Best answer

Accepted Solutions
Hal_Al
Level 15

How much money do you need to earn on the books in order to receive EIC

Any amount of earned income is eligible for the EIC; even $1.

The opposite  question might be: at what point does my EIC decrease with more income? The basic EIC works on a "bell curve," rising as a worker's wages rise reaching a maximum when annual earnings are between $14,040 and $18,340 (Single with 2 or 3 children 2016) and then declining gradually until it phases out altogether. If your income is on the up slope of the EIC curve more earned income will increase your EIC but if your income is on the down slope, more income (of any kind) will reduce your EIC. The “upslope" on the EIC curve is very steep; basically for every $3 you earn, the government gives you another dollar. See the curve (graph) at:

http://www.taxpolicycenter.org/briefing-book/key-elements/family/eitc.cfm

The earned income credit is first calculated (actually looked up in a table) on your earned income then it is calculated on your total income (AGI). You get the lesser of the two calculated EIC numbers. See the 2017 EIC table at:

https://apps.irs.gov/app/vita/content/globalmedia/earned_income_credit_table_1040i.pdf

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5 Replies
SweetieJean
Level 15

How much money do you need to earn on the books in order to receive EIC

Any money earned off the books must still be reported.
cheryllaundre
New Member

How much money do you need to earn on the books in order to receive EIC

Yes....i guess i asked the question wrong. ...what's the minimum income amount eligible for EIC
Hal_Al
Level 15

How much money do you need to earn on the books in order to receive EIC

Any amount of earned income is eligible for the EIC; even $1.

The opposite  question might be: at what point does my EIC decrease with more income? The basic EIC works on a "bell curve," rising as a worker's wages rise reaching a maximum when annual earnings are between $14,040 and $18,340 (Single with 2 or 3 children 2016) and then declining gradually until it phases out altogether. If your income is on the up slope of the EIC curve more earned income will increase your EIC but if your income is on the down slope, more income (of any kind) will reduce your EIC. The “upslope" on the EIC curve is very steep; basically for every $3 you earn, the government gives you another dollar. See the curve (graph) at:

http://www.taxpolicycenter.org/briefing-book/key-elements/family/eitc.cfm

The earned income credit is first calculated (actually looked up in a table) on your earned income then it is calculated on your total income (AGI). You get the lesser of the two calculated EIC numbers. See the 2017 EIC table at:

https://apps.irs.gov/app/vita/content/globalmedia/earned_income_credit_table_1040i.pdf

DoninGA
Level 15

How much money do you need to earn on the books in order to receive EIC

It depends on your age, filing status, qualifying children being claimed and types of income being reported. 

Go to this IRS website for EIC information - https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/do-i-qualify-for-earned-...

Go to this IRS website for EIC for income limits and maximum amounts - https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/eitc-income-limits-maxim...

Use this IRS EIC assistant to see if you are eligible for EIC - https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

xmasbaby0
Level 15

How much money do you need to earn on the books in order to receive EIC

Even a small amount of earned income can qualify for EIC if you meet the other requirements to receive EIC.  If you do qualify, then TurboTax calculates it and adds it to your refund automatically.  In order to get the other "refundable" child-related credit, the Additional Child Tax Credit, you need no less than $3000 of earned income.  That credit is also calculated and added to your refund automatically by TT if you are getting it.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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