Earned Income Credit to the Rescue

[Arc]

The stimulus package may be ill timed. This is the time for the Earned Income Credit (EIC) - which allows low incomers with children to get refunds of as high as approx $4,500. Note that this is above and beyond the refund they get for any fed taxes paid in - since they will not have any taxable income. After HR Block takes their $300+ cut for preparing the simple tax return and getting them a check in 24 hours - there is over 4000 left to stimulate the economy.

I say wait a few weeks to see if the EIC can single handedly lift us out of the doldrums!

Earned income tax credit - Wikipedia, the free encyclopedia

 

[frayne]

Actually the max EIC amount for a low income person or couple filing jointly claiming two children is $4716 for tax year 2007.