Why do you not get Earned Income Credit or Child Credit on unemployment?

Why do you not get Earned Income Credit or Child Credit on unemployment?

Postby tiernay » Sun Jan 30, 2011 6:39 am

Why do you not get Earned Income Credit or Child Credit on unemployment?
I normally get back close to $6,000 on my tax return and now that I was laid off from my job I will get only a thousand back? I was so counting on this refund to help me get back on my feet, how are people supposed to survive? I cannot claim EIC or Child credit on unemployment?? Is there anyway to maximize my refund?? Please help! I didn't ask to be laid off from work
tiernay
 
Posts: 101
Joined: Wed Jan 12, 2011 2:16 am



Why do you not get Earned Income Credit or Child Credit on unemployment?

Postby wally » Sun Jan 30, 2011 6:40 am

Because unemployment is not earned income.
wally
 
Posts: 91
Joined: Thu Jan 13, 2011 12:27 am



Why do you not get Earned Income Credit or Child Credit on unemployment?

Postby cawrdav26 » Sun Jan 30, 2011 6:42 am

Merely receiving unemployment does not automatically disqualify one for the EIC, and is not a factor for the CTC.

For the EIC, unemployment does not count when computing the credit amount. However, if you worked in 2010 the EIC would still be computed using your 2010 earned income.

For the non-refundable CTC, earned income is not necessary. Earned income is needed for the refundable Additional CTC.

You should recompute your return if you left off the EIC and CTC simply because part of your income for the year was unemployment.
cawrdav26
 
Posts: 82
Joined: Fri Jan 28, 2011 8:04 am



Why do you not get Earned Income Credit or Child Credit on unemployment?

Postby kaley76 » Sun Jan 30, 2011 6:44 am

Taxreff hit the nail on the head. If you had EARNED income you can still file for the EIC and ACTC.
If unemployment was your only source of income you are out of luck on those.
kaley76
 
Posts: 106
Joined: Wed Jan 12, 2011 12:05 am



Why do you not get Earned Income Credit or Child Credit on unemployment?

Postby birley28 » Sun Jan 30, 2011 6:47 am

Taxreff hit the nail on the head. If you had EARNED income you can still file for the EIC and ACTC.
If unemployment was your only source of income you are out of luck on those.
A lot of people are in the same situation you are including myself. I already knew ahead of time that you cant claim the Earned Income Credit on Unemployment. I would have been upset too if I had just found that out so I can imagine your frustration. But you still can claim it on the amount you did earn through your job before you were laid off. Hope This Helps.
birley28
 
Posts: 102
Joined: Sun Jan 16, 2011 1:41 am



Why do you not get Earned Income Credit or Child Credit on unemployment?

Postby jerande32 » Sun Jan 30, 2011 6:54 am

you can't get earned income credit if you don't have earned income and unemployment does not count for earned income. The making work pay credit you can't get either if you didn't work. Child tax credit just takes of how much taxes you owe so if you don't owe taxes you can't get that either
jerande32
 
Posts: 78
Joined: Thu Jan 27, 2011 11:32 pm




Return to Taxes



 


  • Related topics
    Replies
    Views
    Last post

Who is online

Users browsing this forum: No registered users and 1 guest