Taxpayer 67, spouse 62. They have $11,000 AGI and $30,000 SS. They are qualifying for EIC of $457. It just doesn't seem that they should qualify for EIC but I cannot find anything to the contrary. I know they do qualify if one spouse is under 65 but should not their overall income prohibit the credit?
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Worksheet A
I see why you're questioning it; it does seem a little counterintuitive. Over the last few years, I have begun to question the output of my software more and more frequently. I have found only one or two genuine errors or bugs in the program. It is more common for me to find that the output of the program is wrong because the input was wrong.
But in this case, I think you're getting an accurate tax return. See Worksheet A for EIC, on page 49 of the instructions for Form 1040. Apparently, the formula for EIC only looks at two numbers: Earned Income and AGI. Because their social security benefits are nontaxable, it doesn't come into play.
BMKLast edited by Koss; 03-09-2011, 11:38 AM.Burton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process. -
Worksheet A
Thank you. I had worked through the worksheet and came to the same conclusion. Just a little uneasy with the result.Comment
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