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Old 08-31-2011, 11:55 AM
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Join Date: Aug 2011
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Unemployed Primary tax payer

I have been the primary tax payer for 6 years, my husband is self employed. Will we be eligable for EIC? I have been unemployed since last september. How is this going to effect our taxes?


Last edited by Wer4chicks : 08-31-2011 at 11:56 AM. Reason: forgot something


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Old 09-01-2011, 03:24 AM
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“I have been the primary tax payer for 6 years, my husband is self employed. Will we be eligable for EIC? “ It depends on the situation; You may claim the EIC as long as your earned income OR AGI less than (for 2010) : $13,460 ($18,470 for married filing jointly) if you do not have a qualifying child:
$35,535 ($40,545 for married filing jointly) if you have one qualifying child:
$40,363 ($45,373 for married filing jointly) if you have two qualifying children: or
$43,352 ($48,362 for married filing jointly) if you have more than two qualifying children:
And your investment income, unearned income, $3,100 or less.
Please visit the IRS Website here: Tips and Guidance for Determining Eligibility
“I have been unemployed since last september. How is this going to effect our taxes?”--->As you can see, as your gross income/AGI/Taxable income decrease due to your unemployment since last September, your tax liability will ALSO decrease. IF you recevcie unemployment compenasation, your unemployment [compensation] is taxable(Unemployment benefits that are more than $2400 is your income that you must report on your tax return) ; it's taxed on line 19 of Form 1040 under Form 1099-GUnemployment is often not taxable at the state level, even if you live in a state that has taxes. The federal government does tax unemployment compensation.However, as long as you meet the requirements for EIC eligibility, you can still be subject to your EIC. Remember that, even if you were unemployed at the end of the year, if you worked for any part of the tax year, you may still be eligible for the Earned Income Tax Credit (EITC).



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