A NEW INCOME

A New Income Q&A

Q: What's considered "low income" in california?

in Bush's new bill (for giving US citizens at least $600 back per person on tax returns), it states that the return will be cut in half (at least $300 per person) for a low income household. but what is low income?

A: For the EITC (Earned Income Tax Credit) your adjusted income for 2007 cannot exceed $12,500 per year, and you have to be over 25. I don't know anyone over 25 that files as an individual and makes less than 12,500. Who is going to benefit from this? This is from irs.gov and the have a questionarie to fill out to see if you qualify. Thats when I found out about the income requirements. "You must meet the following EITC requirements: Must have a valid Social Security Number You must have earned income from employment or from self-employment. Your filing status cannot be married, filing separately. You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return. You cannot be a qualifying child of another person. If you do not have a qualifying child, you must: be age 25 but under 65 at the end of the year, live in the United States for more than half the year, and not qualify as a dependent of another person Cannot file Form 2555 or 2555-EZ (related to foreign earn income) EITC Thresholds and Tax Law Updates Special rules may apply"

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