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I have a friend who gave me some conflicting information, but it got me thinking. Is it possible for a person with a family to invest money in stocks, bonds, ETFs, etc. and still be eligible for EIC? I always thought that if they have money socked away in investment, they will not be eligible for EIC as they have the cash in place regardless how much they earn.
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EIC has nothing to do with cash in hand. It looks at income & family size, that's it. I was pretty surprised when we started qualifying for the EIC after my son was born - I thought we had a pretty reasonable income. -
There is a limit on dividend income, that could limit one from receiving EIC. You might actually qualify for the Saver's Credit if you save in a Roth IRA or other retirement vehicle. You are disqualified after reaching a certain income.
We actually qualified for EIC twice, both times when my husband was deployed. His combat income didn't have to count towards our income, thus it was low enough to qualify. Ironically, both times it was the most income we ever earned because of higher benefits while deployed, virtually no taxes and the EIC.My other blog is Your Organized Friend.Comment
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