How to maximize my Earned Income Credit [Self Employed]
Here is some very helpful info if you are self employed with (or without) chilren and you want to know the maximum credit you may receive:
How Is My Earned Income Credit Calculated?
TurboTax can calculate this for you automatically.
The amount of your earned income credit depends on:
– Your income (both your wages & total income are part of the calculation)
– How many qualifying children you have: none, one, two or three.
To receive the maximum credit of $6,143, you need to have three qualifying children and
– Married: have income between $13,650 and $23,300
– Not married: have income between $13,650 and $17,850
To receive the maximum credit of $5,460, you need to have two qualifying children and
– Married: have income between $13,650 and $23,300
– Not married: have income between $13,650 and $17,850
If you have one qualifying child, your maximum credit is $3,305. To get this amount, you must:
– Married: have income between $9,700 and $23,300
– Not Married: have income between $9,700 and $17,850
If you don’t have any qualifying children, your maximum credit is $496. To get this amount, you must:
– Married: have income between $6,450 and $13,550
– Not Married: have income between $6,450 and $8,150
Your credit decreases the further away your income gets from these income ranges. If you don’t have any earned income at all, your credit will be $0. Likewise, if your income is above the maximum income allowed for the credit, your credit will be $0.
Here are some examples:
– Married with one child and income of $30,255, your credit would be $2,184. If you had two children, your credit would be $3,983. If you had three children, your credit would be $4,665.
– Not Married with one child and income of $30,255, your credit would be $1,316. If you had two children, your credit would be $2,839. If you had three children, your credit would be $3,522.
– Married with no children and income of $13,177, your credit would be $496
– Not Married with no children and income of $13,177, your credit would be $108.
Source: TurboTax On Demand Tax Guidance
