Do you think people who qualify for the EITC are poor?
- 264 Replies
The average U.S. salary for 2012 was $47,000. The median household income was $50,020.
A salary of $51,567 in San Francisco, California could decrease to $21,948 in Carthage, Missouri. And a salary of $51,567 in Carthage, Missouri should increase to $121,155 in San Francisco, California.
Preview of 2013 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
$46,227 ($51,567 married filing jointly) with three or more qualifying children
$43,038 ($48.378 married filing jointly) with two qualifying children
$37,870 ($43,210 married filing jointly) with one qualifying child
$14,340 ($19,680 married filing jointly) with no qualifying children
Tax Year 2013 maximum credit:
$6,044 with three or more qualifying children
$5,372 with two qualifying children
$3,250 with one qualifying child
$487 with no qualifying children
Investment income must be $3,300 or less for the year.
what is difference of earned income and AGI? I dont think we will qualify... im sorta bummed because we arent rich... make barely over the cut off but have four kids... that bites. it gets disheartening when u dont make a lot for your family size and everyone else qualifies for assistance but your family keeps doing it all alone.
Not necessarily. A single mom making 45,000 with three kids qualifies but if she also receives child support she is probably doing pretty well taking care of her kids. We have only qualifed for it once and that was when I had my first child and had to took the FMLA and dh was doing his residency. We weren't poor but we qualified that year.
The cost of rent here is VERY cheap compared to where I've lived before
We don't make a lot by cm standards, but we have a nice place, 2 cars (one from a dealership) and we don't have fs
Quoting Lydlou02:
Not necessarily. Those are federal numbers that don't take into account the cost of living in your area. We're quite comfortable with three kids, but still qualify for that particular credit.
yes...i didn't qualify this year and i live pay check to pay check
We qualify for it. We are poor by societies standards, although I don't feel like we are poor. We have food, shelter, clean clothes, a vehicle that's in good shape, heat, furniture. We may not have all the luxuries but we get by, if that's poor, then I guess so...
Adjusted gross income (AGI) is total gross income minus specific reductions.
Common deductions:
* Expenses of carrying on a trade or business including most rental activities (other than as an employee)
* Certain business expenses of teachers, reservists, performing artists, and fee-basis government officials,
* Health savings account deductions,
* Certain moving expenses,
* One-half of self-employment tax,
* Allowable contributions to certain retirement arrangements (SEP IRA, SIMPLE IRA, and qualified plans) and Individual Retirement Accounts (IRAs),
* Penalties imposed by financial institutions and others on early withdrawal of savings,
* Alimony paid (which the recipient must include in gross income),
* College tuition, fees, and student loan interest (with limitations and exceptions),
* Jury duty pay remitted to the juror's employer,
* Domestic production activities deduction, and
* Certain other items of limited applicability.
Quoting KrissyKC: what is difference of earned income and AGI? I dont think we will qualify... im sorta bummed because we arent rich... make barely over the cut off but have four kids... that bites. it gets disheartening when u dont make a lot for your family size and everyone else qualifies for assistance but your family keeps doing it all alone.
Where I live a simple 1 bedroom condo costs over 500k, nevermind what houses cost. The mortgage alone would eat up those values with nothing left over to eat.
I think my husband's a sociopath