John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Earned Income Credit

We don't try to be experts at everything and the Earned Income Credit is one area that we do not want to become experts in.

The Earned Income Credit (EIC) is a credit for low income taxpayers, particularly those with dependent children.

If when we are preparing a tax return and we have all of the relevant material, once in a blue moon an EIC pops up on the return. We assume that the software does it correctly and that is about the extent of our knowledge.

This credit can be HUGE on a relative sense for taxpayers. For qualifying taxpayers with two or more children the credit for 2007 can be as much as $4,716. We suggest that if this is applicable to you, that you look over IRS information regarding such.

We, however, have decided to focus our expertise in other areas of the tax code and are self proclaimed NON EXPERTS in this area.