EIC Due Diligence

[Jiggers]

How do they live on so little? Maybe not so little. Wish there was an accounting like a 1099WB (Welfare Benefits) that would be issued to everyone that is getting some type of benefit.

With food stamps (or the equivalent), free school breakfasts and lunches, free medical care, subsidized housing, subsidized utilities, and on and on and on.

I would bet that $12,000 for the one wage earner turns into about $10,000 or more per person in the household.

[Gretel]

How exactly do they survive on so little? Live with other people?

Well, where I live, I know a mother who raised 3 boys on her own with $20,000 plus put a little money into savings. She really impressed me.

Others earn about $12,000-$15,000 and have children and get food stamps.

So, just the amount does not tell the story. But saying: What are my options does, of course.

[RitaB]

Well

Well, they get $6,800 in refundable credits. That helps.

[zeros]

Interesting Question

How exactly do they survive on so little? Live with other people?

[RitaB]

Or

Or, he will come back and say he made $20,000 and get even more EIC.

[Bees Knees]

Good for you. Hopefully all the rest of the preparers he goes to will ask the same question.

[manyhappyreturns]

Had an interesting response to my due diligence questioning last week. I asked my client how he was able to support himself and his wife and 2 children all year on about $12,000 income, and he asked me, "What are my options?" I answered, "Well, actually the truth." Then he got all squirmy and said he needed to go home and do some refiguring, so I said okay see ya later. I don't suppose I'll see him again, except maybe at the grocery store. (I live in a rather small town.)