Earned Income Credit

[HouseofWool]

This is my first year really filing taxes with various deductions (medical expenses, childcare and the kicker of owning my own house). I am running through the stuff for Turbo Tax and I do the questionnaire for the EIC and it says I qualify, but it hugely changes the total refund in my favor and it makes me nervous that I am not really eligible for as much as they say I am... (How can I be getting a refund that is several times what I have paid in and I haven't even finished added things like charitable giving or un-remibursed work expenses?)

I am hoping someone (SpottyDog) can elucidate me because I am feeling either overjoyed or more than a bit nervous that I am going to get audited.

[BonBon]

I don't know much about it, except that a woman I used to work with was in a similar situation as you and got way more back than she paid in. I am leaning towards you being overjoyed, because I think that's how it's supposed to work. Fingers crossed!!

[Vanquisher]

We qualified for the EIC for many years during college and medical school, and yup, we got more back than we paid in. However, itemizing didn't really help us any further, but I hope it does for you.

[MDPhDWife]

We qualified for the EIC for many years during college and medical school, and yup, we got more back than we paid in. However, itemizing didn't really help us any further, but I hope it does for you.

Ditto. During med school, our tax rate actually came out in negative percentages. Itemizing wasn't a huge factor and EIC added thousands of dollars to our refund. Enjoy!

[HouseofWool]

I am really hoping that it is correct because it will make a world of difference in my life if the refund really is as big as turbo tax is saying it is. Like light years different. Like I can start saving to buy new appliances and get rid of the crappy ass electric stove that I hate.

[SuzySunshine]

Yep, we also got that during residency. I had one friend with 4 kids and they always got back way more then they paid in and were on one salary.

[moonlight]

I am really hoping that it is correct because it will make a world of difference in my life if the refund really is as big as turbo tax is saying it is. Like light years different. Like I can start saving to buy new appliances and get rid of the crappy ass electric stove that I hate.

You bought a house and have two kids? Yeah, it should be big. Congrats and enjoy!

[oceanchild]

Getting back more than you put in is, I believe, the whole point of the EITC.

[spotty_dog]

Getting back more than you put in is, I believe, the whole point of the EITC.

Yep, exactly. It's one of the few credits that can exceed your tax owed. When we took the Lifetime Learning Credit, it canceled out our tax to zero but didn't go past that. EITC is different. If you make less than $41K with two kids, you can get something back even if your liability is otherwise nada. Employers are made to remind their employees over and over that they should file even if their income is otherwise too low to require it, because EITC could mean money in their pocket.

I'd be super happy to go over your numbers though!