Quote:
Originally Posted by KMA-628
Kutulu -
My wife is making up a hypothetical return in a few minutes (she is a tax accountant) and I will pass it on when I get a chance.
Basically: Married filed Jointly gets EIC if their income is under $35,458. Then, you add in the standard deductions, the kid deductions and you will see that the hypothetical family of four will get back more than they paid.
That doesn't count additional deductions, i.e. if they own a house, etc.
Basically, as you go down the income ladder from $35K the less you pay in taxes and the more you get back.
Kinda hard to cite sources since this is all under IRS rules, that is why she (my wife) is using her tax software to make a hypothetical return based on $30K, average withholding, etc.
The burden really isn't in the $35K and under, it is the $35K to $115K range. That is the range, in my opinion, that feels it the most come 4/15.
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Have fun with it. I've never qualified for the EIC so I really don't know much about it.
I agree that it's the $35 - $115k range that is hurt the most but original complaint was about the <$29k and their 'free ride.' The people between 35-115 make up 40% of the population and even then they pay less than what a flat tax rate would require.