Maximum investment income to get the credit?

[Joe Btfsplk]

I found this in the IRS web site under changes for Individuals in 2006

Investment income amount.
The maximum amount of investment income you can have in 2006 and still get the credit increases to $2,800.

What kind of credit are they talking about?

[veritas]

EITC?

this is fill so I can post the answer.

[jimmcg]

Earned income credit is what they are referring to. When investment income meets this amount for 2006 the credit is not available.

[Joe Btfsplk]

So it's the "unearned" income credit.

Thanks for the explanation. So the Earned Income Credilt is now simply THE credit.
I don't think I've ever had a client who got the Earned Income Credit who had any investment income over $ 1.50.

[jimmcg]

Had a small farm family a few years ago who sold some cull cows for capital gains and were not able to take the credit that year. They were not happy campers that year when they realized what they had done. From that point on they did some astute tax planning before year end.