Friday, January 11, 2013

Earned Income Credit

It's W-2 time, so I'm able to start getting more accurate numbers to estimate our 1040 return.

Last tax year, I worked half the year and was able to contribute a 401(k) in addition to use the childcare credit for the max. It gave me credits that along with the depend child credit that I didn't owe taxes, thus receiving all withheld taxes and some. We made too much for Earned Income Credit for our AGI was above the threshold for being married with two dependent children.

This year we may not have the savers or childcare credits, but we should definitely qualify for EIC for our AGI was lower than the threshold. Of course, I never filed and received EIC, so I didn't realize that unemployment benefits aren't considered earned income. Should be interesting to see what we get back.

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