Chris Hughes
72-422: Aisha Nyandoro Dorian Warren Economic Security Project ( ESP ) is an American progressive non-profit organization focused on economic issues, primarily guaranteed income and antimonopoly action. Founded in 2016 with the aim to "make our economy work again for all Americans," ESP has provided seed funding and organizational support for guaranteed income pilot projects across the country, and has advocated for
144-447: A demogrant of $ 1,000 for every American. Critics during this time complained about implying people don't have to work for a living, and saw the program as having too little stigma; during this time, Hawaii had an established residency requirement for public aid, which one Hawaii State Senator suggested was necessary to discourage "parasites in paradise". Proposed by Russell Long and signed into law by President Gerald Ford as part of
216-444: A 25% immediate drop in food insufficiency rates among low income households. Ultimately, Congress failed to extend or renew the expanded Child Tax Credit. ESP has now shifted to a long-term campaign to renew the expanded Child Tax Credit. ESP also works to expand state-level tax credits to deliver regular cash payments to families and to create models for national legislation. Aisha Nyandoro Aisha Nyandoro (born 1978/1979)
288-492: A United States citizen or resident alien. In the case of married filing jointly where one spouse is and one isn't, the couple can elect to treat the nonresident spouse as resident and have their entire worldwide income subject to U.S. tax, and will then be eligible for EITC. Filers both with and without qualifying children must have lived in the 50 states and/or District of Columbia of the United States for more than half
360-493: A dependent, there is no rule that a qualifying child not support herself or himself. A child who supports himself or herself can still qualify as a qualifying child for purposes of the EIC. There is an exception for older married "children." If an otherwise qualifying child is married, the claimant needs to be able to claim this child as a dependent (and the married couple must have low enough income so that they are not required to file
432-614: A few small local EITCs have been enacted in San Francisco , New York City , and Montgomery County, Maryland . Earned income is defined by the United States Internal Revenue Code as income received through personal effort, with the following as the main sources: Income that does not qualify as earned includes investment income, rental income (since it is passive), alimony, pensions, social security, worker's comp, etc. If an adult's income
504-689: A grantee of the Antimonopoly Fund, saw their former legal director, Lina Khan, confirmed as Chair of the Federal Trade Commission. Economic Security Project helped enact the 2021 expansion of the Federal Child Tax Credit , providing regular monthly payments to all families with children, effectively creating a guaranteed income for children. The expanded credit led to a 46% decline in child poverty , lifted 3.7 million children out of poverty and resulted in
576-407: A higher adjusted gross income (AGI) than any parent who has lived with the child for at least six months. This still remains the parent's choice. Provided the parent has lived with the child for at least six months and one day, the parent can always choose to claim his or her child for purposes of the earned income credit. In a tiebreaker situation between two unmarried parents, the tiebreak goes to
648-481: A married couple who is claiming EITC with a child, even if one or both spouses are under the age of 19. A person claiming EITC must be older than his or her qualifying child unless the “child” is classified as "permanently and totally disabled" for the tax year (physician states one year or more). A qualifying "child" can be up to and including age 18. A qualifying "child" who is a full-time student (one long semester or equivalent) can be up to and including age 23. And
720-469: A married couple with two qualifying children and yearly income of seven thousand dollars will receive EITC of $ 2,810 (going up the hill). At fifteen thousand dollars, this couple will receive EITC of $ 5,036 (plateau). And at twenty-five and thirty-five thousand dollars, this same couple with their two children will receive EITC of $ 4,285 and $ 2,179, respectively. A single person (such as a single parent, aunt, uncle, grandparent, older sibling, etc.) goes up
792-510: A month for 12 months to a group of 20 Black mothers living in public housing. The program was expanded to include 110 mothers in March 2020, and served 100 mothers in April 2021. Surveys of participants show that the cash helped the recipients achieve their educational goals, provide more resources for the education of their children, and spend more time with their families. The Cost-of-Living Refund
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#1732781089078864-443: A more equitable economy, while also giving grants and campaigning in support of a guaranteed income and anti-monopoly action. The organization was founded in 2016 by Chris Hughes , Dorian Warren, and Natalie Foster. Chris Hughes is a co-founder of Facebook and founder of Jumo . Dorian Warren is the co-President of Community Change , as well as a scholar and organizer. Natalie Foster is an Aspen Institute Fellow and an organizer and
936-579: A paper by Economist Darrick Hamilton and others. This plan would guarantee a $ 12,500 annual income for every adult and a $ 4,500 allowance for every child. Responding to the mass unemployment and economic downturn of the COVID-19 pandemic , Economic Security Project advocated for direct cash stimulus policies to lift 12 million Americans out of poverty. One iteration of Emergency Money to the People would provide $ 750 per adult and $ 250 per child quarterly until
1008-401: A parent and an uncle may meet the initial standards of relationship, age, and residency to claim a particular child. In such a case, there is a further rule: If a single parent or both parents, whether married or not, can claim the child (residency and age) but choose to waive the child to a non-parent, such as a grandparent or uncle or aunt, this non-parent can claim the child only if they have
1080-435: A period of more than 90 days (which is still considered to be extended active even if the period ends up being less than 90 days). Temporary absences, for either the claimant or the child, due to school, hospital stays, business trips, vacations, shorter periods of military service, or jail or detention, are ignored and instead count as time lived at home. "Temporary" is perhaps unavoidably vague and generally hinges or whether
1152-429: A person classified as "permanently and totally disabled" (one year or more) can be any age and count as one's qualifying "child" provided the other requirements are met. Parents claim their own child(ren) if eligible unless they are waiving this year's credit to an extended family member who has higher adjusted gross income. There is no support test for EITC. There is a six-month plus one day shared residency test. In
1224-473: A person obtains a divorce by December 31, that will carry, since it is marital status on the last day of the year that controls for tax purposes. In addition, if a person is "legally separated" according to state law by December 31, that will also carry. The only disqualifying filing status for purposes of the EIC is married filing separately. EIC phases out by the greater of earned income or adjusted gross income. A married couple in 2018, whose total income
1296-430: A qualifying child, only one spouse must be within this age range. For a single person with a qualifying child, there is no age requirement per se other than the requirement that the single person not himself or herself be claimable as another relative's qualifying child (see Age section above). A married couple with at least one qualifying child is only occasionally classified as claimable by another relative, especially if
1368-455: A recipient's income and number of children. Low-income adults with no children are eligible. For a person or couple to claim one or more persons as their qualifying child, requirements such as relationship, age, and shared residency must be met. EITC phases in slowly, has a medium-length plateau, and phases out more slowly than it was phased in. Since the credit phases out at 21% (more than one qualifying child) or 16% (one qualifying child), it
1440-568: A return and are either not filing or are filing only for the purpose of claiming a refund on withheld taxes). Investment income cannot be greater than $ 3,650 for the 2020 tax year. As a result of the American Rescue Plan Act of 2021 , the investment income limit was increased to $ 10,000 effective the 2021 tax year and will be adjusted for inflation. Investment income includes interest, dividends, capital gains, rental income, and passive activities." A claimant must be either
1512-576: A significant impact on the lives and communities of the nation's lowest-paid working people largely repaying any payroll taxes they may have paid. The EITC is one of the most effective social welfare programs in the United States. The Census Bureau, using an alternative calculation of poverty, found that EITC lifted 5.4 million above the poverty line in 2010. The stimulus effects of the EITC and other consumption-augmenting policies have been challenged by more recent and rigorous studies. Haskell (2006) finds that
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#17327810890781584-458: A silver lining: there are perhaps more important benefits from recipients who use the credit for savings or investment in big-ticket purchases that promote social mobility, such as automobiles, school tuition, or health-care services. Due to its structure, the EITC is effective at targeting assistance to low-income families in the bottom two quintiles—0–40% of households. By contrast, only 30% of minimum wage workers live in families near or below
1656-507: A similar conclusion applies to the standard Spring semester. However, the five months need not be consecutive and can be obtained with any combination of shorter periods. A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. High school students who work in co-op jobs or who are in a vocational high school program are classified as full-time students. Schools include technical, trade, and mechanical schools. A person who
1728-446: A spouse who lived apart with children for the last six months of the year and who meets other requirements can file as Head of Household. Or, for a couple that is split up but still legally married, they might consider visiting an accountant at separate times and perhaps even signing a joint return on separate visits. There is even an IRS form that can be used to request direct deposit into up to three separate accounts. In addition, if
1800-478: A tax credit traditionally reserved for waged employment. Economic Security Project's approach was incorporated into several proposed but unpassed Congressional bills, including then-Senator Kamala Harris 's LIFT Act in 2018, Rep. Rashida Talib 's BOOST Act, and the Worker Relief and Credit Reform Act by Rep. Bonnie Watson Coleman . This proposal was expanded up through Guaranteed Income for the 21st Century,
1872-409: Is Married Filing Separately. However, a couple can file as Married Filing Jointly even if they lived apart for the entire year if legally married and both agree. A 2016 review of the EITC and state-matches to the EITC found significant impacts on maternal mental health, low birth weight births, and other health indicators association with inflammation. According to a 2020 study, the introduction of
1944-507: Is a loss of up to $ 6,431 due to one extra dollar of investment income, and the loss is nearly twice the entire amount of the couple's investment income. This is an edge case, but there are income ranges and situations in which an increase of investment dollars will result in a loss of after-tax dollars. (Instead of $ 24,350, the phase-out for Single, Head of Household, and Qualifying Widow(er) begins at $ 18,700.) In normal circumstances, EIC phases out relatively slowly, at 16% or 21% depending on
2016-492: Is also potentially claimable. If so, the younger single parent cannot claim EIC. This rule does not apply to a married couple who are claiming EIC with a child, even if one or both spouses are under the age of 19. (This rule also does not apply if the older relative is not required to file a tax return, and subsequently either does not file or only files to receive a full refund of taxes withheld.) Generally, one sibling claiming another as their qualifying child must be older. In
2088-498: Is always preferable to have an extra fifty dollars of actual earned income (the table for EITC steps in increments of fifty dollars). The GRAPHICAL plateau range for Married Filing Jointly continues for five thousand dollars longer than does the plateau for the other filing statuses and thus MFJ can be advantageous for some income ranges. Single, Head of Household, and Qualifying Widow(er) are all equally valid and eligible filing statuses for claiming EITC. The only disqualifying status
2160-481: Is always preferable to have one more dollar of actual salary or wages considering the EITC alone. However, investment income is handled far less gracefully, as one more dollar of income can result in a sudden and complete loss of the credit. If the EITC is combined with multiple other means-tested programs such as Medicaid or Temporary Assistance for Needy Families , it is possible that the marginal tax rate approaches or exceeds 100% in rare circumstances depending on
2232-509: Is an Economic Security Project plan to expand the Earned Income Tax Credit (EITC), using the tax code to provide an income floor to families earning under $ 75,000. It would expand the size of the tax credit and pay it monthly. A significant feature of this plan would be to expand the definition of work to include college students and caregivers of children, the sick, disabled and elderly, thus qualifying more people to receive
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2304-515: Is classified as "permanently and totally disabled" (physician states one year or more) can be any age and the age requirement is automatically met. More fully, the definition of "permanently and totally disabled" is that a person has a mental or physical disability, cannot engage in substantial gainful activity, and a physician has determined that the condition has lasted or is expected to last one year or more (or that it can lead to death). The claimant must live with their qualifying child(ren) within
2376-439: Is represented by the lightest blue, solid line (other lines are various other scenarios): At a cost of $ 56 billion in 2013, the EITC is the third-largest social welfare program in the United States after Medicaid ($ 275 billion federal and $ 127 billion state expenditures) and food stamps ($ 78 billion). Almost 27 million American households received more than $ 56 billion in payments through the EITC in 2010. These EITC dollars had
2448-403: Is that the qualifying "child" must be under the age of 19 at the end of the tax year. That is, the younger person can be 18 years and 364 days old on December 31 and the age requirement is met. This age limit is extended for a qualifying "child" who is also a full-time student during some part of five calendar months. This young adult merely needs to be under age 24 at the end of the tax year for
2520-685: Is the founder and CEO of Springboard to Opportunities, a Mississippi -based nonprofit working to end generational poverty . Nyandoro grew up in Mississippi. She earned a B.A. in psychology from Tennessee State University , and an M.A. and Ph.D. in Community Psychology from Michigan State University . In 2013, Nyandoro co-founded Springboard to Opportunities, a Jackson, Mississippi -based nonprofit organization supporting families living in subsidized affordable housing . Through Springboard to Opportunities, Nyandoro launched
2592-408: Is very low they may be eligible for EITC even if they have no children, for the 2021 that was less than $ 21,430 ($ 27,380 if married filing jointly). A person or couple claiming EITC with one or more qualifying children need to fill out and attach Schedule EITC to their 1040 or 1040A. This form asks for the child(ren)'s name, social security number, year of birth, whether an older "child" age 19 to 23
2664-541: The Omidyar Network and Open Society Foundations . The fund was invested in organizations working to curb monopoly power throughout the economy, including the agricultural and pharmaceutical sectors. In a 2020 interview on Amanpour & Co ., Hughes elaborated on the intentions of the Antimonopoly Fund: "The fewer companies you have, the more power they have and the more that their voice is heard in
2736-490: The Tax Reduction Act of 1975 , the EITC provides an income tax credit to certain individuals. Upon enactment, the EITC gave a tax credit to individuals who had at least one dependent, maintained a household, and had earned income of less than $ 8,000 during the year. The tax credit was $ 400 for individuals with earned income of less than $ 4,000. The tax credit was an amount less than $ 400 for individuals whose income
2808-993: The 2009 American Recovery and Reinvestment Act , the EITC was temporarily expanded for two specific groups: married couples and families with three or more children; this expansion was extended through December 2012 by H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 . Effective for the 2010, 2011, 2012 and 2013 filing seasons, the EITC supported these taxpayers by: As of 2022, 30 states and DC have enacted state EITCs: California , Colorado , Connecticut , Delaware , District of Columbia , Hawaii , Illinois , Indiana , Iowa , Kansas , Louisiana , Maine , Maryland , Massachusetts , Michigan , Minnesota , Montana , Nebraska , New Jersey , New Mexico , New York , Ohio , Oklahoma , Oregon , Rhode Island , South Carolina , Vermont , Virginia , Washington , and Wisconsin . Some of these state EICs are refundable, and some are not. In addition,
2880-614: The EIC table $ 25,525 for MFJ with two children, and this amount is $ 4,557. Since they are claiming children, the Greys will also need to attach Schedule EIC to their tax return which will ask for each child, the child's name, social security number, year of birth, relationship to couple, and months lived with couple in the United States during 2012. If the Greys use 1040A, they will enter $ 4,557 on line 38a. If they use form 1040, they will enter $ 4,557 on line 64a. With one child and parent filing singly or as head of household, as of 2020: This
2952-567: The EITC. Today, the EITC is one of the largest anti-poverty tools in the United States, and is mainly used to "promote and support work". Most income measures, including the poverty rate, do not account for the credit. A qualifying child can be a person's daughter, son, stepchild, or any further descendant (such as grandchild, great grandchild, etc.) or a person's brother, sister, half sister, half brother, stepbrother, stepsister, or any further descendant (such as niece, nephew, great-nephew, great-great-niece, etc.). A qualifying child can also be in
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3024-647: The Magnolia Mother's Trust, a guaranteed income program for Black mothers. Founded in 2018, the Trust was the first program of its kind in the U.S. As of 2022 , it is the longest-running guaranteed income program in the U.S. Earned income tax credit The United States federal earned income tax credit or earned income credit ( EITC or EIC ) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends on
3096-662: The SEED program and Magnolia Mother's Trust. The organization was pivotal in expanding the Child Tax Credit during the pandemic. ESP Founder Chris Hughes published an op-ed in the New York Times titled It's Time to Break Up Facebook, which helped launch ESP's Antimonopoly Fund providing seed funding to anti-monopoly organizations. In an opinion piece in The New York Times , Farhad Manjoo wrote: "One of
3168-424: The above and following rules, they can engage in a limited amount of tax planning as to which family member claims the child. A single parent younger than age 19 living in an extended family situation is potentially claimable as the qualifying "child" of an older relative. And a single parent under age 24 who is also a full-time college student (one long semester or equivalent) living in an extended family situation
3240-489: The age requirement to be met (relationship and residency requirements must still be met). That is, the young adult who is full-time for at least part of five different months can be 23 years and 364 days on December 31 and meet the age requirement to be someone else's qualifying "child." The standard Fall semester of a university, in which classes start in late August and continue through September, October, November, and early December, counts as part of five calendar months. And
3312-452: The case of a married couple filing a joint return, only one of the spouses must be older. An exception to the must-be-older-rule is the case of a qualifying child who is classified as "permanently and totally disabled" (physician states one year or more). Such a "child" can be any age and the age requirement is considered to be automatically met (of course the relationship and shared residency requirements must still be met). The standard rule
3384-446: The case of a married couple filing jointly, if one spouse is related to the child by any of the below relationships, both spouses are considered related to the child. The claimant must be related to their qualifying child through blood, marriage, or law. The qualifying child can be: A child might classify as the qualifying child of more than one adult family member, at least initially. For example, in an extended family situation, both
3456-481: The city's annual median household income to qualify. Originally intended to be an 18-month-long program, the program was extended for six additional months to help recipients weather the COVID-19 pandemic and to study the effects of the additional cash during that time period. Research by Stacia West and Amy Baker on the impacts of the guaranteed income payments showed that recipients were more likely to find work than
3528-464: The claimant and/or the child are expected to return, and the IRS does not provide any substantial guidance past this. If the child was born or died in the year and the claimant's home was the child's home, or potential home, for the entire time the child was alive during the year, this counts as living with the claimant, and per instructions, 12 months is entered on Schedule EIC. Unlike the rules for claiming
3600-631: The control group, showed less depression and anxiety, experienced less income volatility, and were more likely to engage in goal-setting and risk-taking. The Magnolia Mother's Trust is an ongoing guaranteed income program in Jackson, Mississippi administered by Springboard to Opportunities, led by CEO Aisha Nyandoro . Funded entirely through philanthropic donations, with some of its funding provided by Economic Security Project, The Magnolia Mother's Trust began in December of 2018 and initially offered $ 1,000
3672-595: The earned income tax credit program should be expanded. In 2021, when the survey was done again, the percentage of economists that agreed to expanding the credit increased to 90%. In 1969, Richard Nixon proposed the Family Assistance Plan , which included a guaranteed minimum income in the form of a negative income tax . The House of Representatives passed this plan, but the Senate did not. During his 1972 Presidential campaign, George McGovern proposed
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#17327810890783744-560: The expansion of cash tax credits and for more robust antimonopoly action. Their efforts have contributed to the increased visibility and political viability of guaranteed income. Since its founding, ESP has helped to set in motion over 100 guaranteed income pilots, whereas there had been only 12 pilots at the time of its founding. The Economic Security Project has solicited bids for paid editors on Misplaced Pages. Economic Security Project works by convening and organizing other philanthropists and non-profit organizations around its mission of creating
3816-410: The federal poverty line, as most are teenagers, young adults, students, or spouses supplementing their studies or family income. Opponents of the minimum wage argue that it is a less efficient means to help the poor than adjusting the EITC. EITC follows a graphical benefit pattern of going up a hill, traveling along a plateau, and then going back down the hill more slowly than it went up. For example,
3888-413: The fifty states and/or District of Columbia of the United States for more than half the tax year (per instructions, six months and one day is listed as 7 months on Schedule EIC). U.S. military personnel stationed outside the United States on extended active duty are considered to live in the U.S. for purposes of the EIC. Extended active duty means the person is called to duty for an indefinite period or for
3960-589: The halls of government, and the more that they're able to shape policy on their behalf. And so what we have seen, even now, or particularly now, is the growth of this power. And good institutions, like the Department of Justice and the FTC , have, in some cases, taken a step back and not taken on their regulatory duties as a result of this pronounced power." In June 2021, the Open Markets Institute,
4032-458: The hill at the same rate and will receive the same maximum EITC for two qualifying children of $ 5,036 at plateau. But the single person has a shorter plateau. And thus, a single person with two qualifying children and income of twenty-five and thirty-five thousand will receive EITC of $ 3,230 and $ 1,124 respectively (going down the hill). EITC phases out at 16% with one qualifying child and at 21% for two children and three or more children. Thus it
4104-502: The income of both spouses, Married Filing Jointly can be advantageous in some circumstances because, in 2009, the phase-out for MFJ for begins at $ 21,450 whereas phase-out begins at $ 16,450 for the other filing statuses. A couple who is legally married can file MFJ even if they lived apart the entire year and even if they shared no revenues or expenses for the year, as long as both spouses agree. However, if both spouses do not agree, or if there are other circumstances such as domestic violence,
4176-529: The main backers of guaranteed income is the Economic Security Project [...] The Economic Security Project has also been a leading political champion of the expanded Child Tax Credit. The group says that both developments — its experience with pilot projects running so far and the success of the expanded Child Tax Credit — are helping to prove a fundamental idea: Giving people money works." The Stockton Economic Empowerment Demonstration (SEED)
4248-441: The married couple has earned income and elects to claim EITC. All filers and all children being claimed must have a valid social security number. This includes social security cards printed with "Valid for work only with INS authorization" or "Valid for work only with DHS authorization." Single, Head of Household, Qualifying Widow(er), and Married Filing Jointly are all equally valid filing statuses for EITC. In fact, depending on
4320-414: The number of children. A person or couple will be disallowed EIC for two years if they claim EIC when not eligible and the IRS determines the "error is due to reckless or intentional disregard of the EIC rules." A person or couple will be disallowed for ten years if they make a fraudulent claim. Form 8862 is required after this time period in order to be reinstated. However, this form is not required if EIC
4392-414: The parent who lived with the child for the longest. In a tiebreaker between two non-parents, the tiebreak goes to the person with the higher AGI. And in a tiebreaker between a parent and non-parent, the parent wins by definition. These tiebreaker situations only occur if more than one family member actually file tax returns in which they claim the same child. On the other hand, if the family can agree, per
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#17327810890784464-422: The process of being adopted provided he or she has been lawfully placed. Foster children also count provided either the child has been officially placed or is a member of one's extended family. A younger single parent cannot claim EITC if he or she is also claimable as a qualifying child of their parent or another older relative, which can happen in some extended family situations. This restriction does not apply to
4536-555: The state of residence; conversely, under certain circumstances, net income can rise faster than the increase in wages because the EITC phases in. The earned income tax credit has been part of political debates in the United States over whether raising the minimum wage or increasing EITC is a better idea. In a random survey of 568 members of the American Economic Association in 2011, roughly 60% of economists agreed (31.7%) or agreed with provisos (30.8%) that
4608-483: The tax year (six months and one day). Puerto Rico, American Samoa, the Northern Mariana Islands, and other U.S. territories do not count in this regard. However, a person on extended military duty is considered to have met this requirement for the period of the duty served. Filers who are not claiming a qualifying child must be between the ages of 25 and 64 inclusive. For a married couple without
4680-485: The unemployment rate fell below 5.5%. The Emergency Money for the People Act, proposed by Representatives Ro Khanna and Tim Ryan , would provide $ 2,000 monthly payments for 6-12 months. A petition sponsored by Economic Security Project advocating for monthly $ 2,000 checks received nearly 3 million signatures in support. In October of 2019, Economic Security Project launched its $ 10 million Antimonopoly Fund with
4752-566: The unique spending patterns of lump-sum tax credit recipients and the increasingly global supply chain for consumer goods is counter-productive to producing high, localized multipliers. He places the local multiplier effect somewhere in the range of 1.07 to 1.15, more in line with typical economic returns. The lower multiplier is due to recipients emphasizing "big-ticket" durable-good purchases, which are typically produced elsewhere, versus locally produced products and services such as agricultural products or restaurant visits. However, Haskell points to
4824-655: Was a co-founder of Rebuild The Dream and Digital Director at Organizing for America . Signatories of the organization's initial statement of belief included Former Secretary of Labor Robert Reich , Black Lives Matter co-founder Alicia Garza , and Alaska State Senator Bill Wielechowski . When the organization was founded, its goal was to "research, experiment, and inspire others to think through how best to design cash programs." That mission came to include doing issues advocacy and providing seed funding. ESP successfully collaborated with local government officials and local nonprofits to conduct guaranteed income pilot programs such as
4896-536: Was a two-year-long guaranteed income pilot program in Stockton, CA that paid 125 participants $ 500 a month, starting in February 2019. This was the first ever mayor-led guaranteed income initiative, spearheaded by Michael Tubbs . Economic Security Project funded the project with an initial $ 1 million grant. No public funds were used. Participants were selected based on their annual income; they had to be at or below
4968-419: Was between $ 4,000 and $ 7,999 during the year. The initial EITC was expanded by tax legislation on a number of occasions, including the widely publicized Tax Reform Act of 1986 , and it was further expanded in 1990, 1993, 2001, and 2009, regardless of whether the act in general raised taxes (1990, 1993), lowered taxes (2001), or eliminated other deductions and credits (1986). In 1993, President Clinton tripled
5040-470: Was classified as a student for the year (full-time status for at least one long semester or equivalent time period), whether an older "child" is classified as disabled during the year (doctor states one year or more), the child's relationship to claimant, and the number of months the child lived with the claimant in the United States. To claim a person as qualifying child, the following requirements of relationship, age, and shared residence must be met. In
5112-427: Was just shy of $ 24,350, of which exactly $ 3,500 was investment income, would receive the maximum credit for their number of qualifying children (i.e. $ 6,431 with 3 kids). But if this couple instead had $ 3,501 of investment income, then — because of the rule that for any claimant, whether single or married, with or without children, investment income cannot be greater than $ 3,500 — they will instead receive zero EIC. This
5184-424: Was reduced solely because of mathematical or clerical error. Cynthia and Jerry Grey have two children ages 6 and 8. For tax year 2012, one spouse made $ 10,000 in wages and the other spouse made $ 15,000, plus the couple received $ 525 on interest from a savings account. Since they are into the phase-out range, their EIC will phase out by the greater of earned income or adjusted gross income. So, they will look up in
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