Another Tax Question

[Der Cute]

Karl -

I think I might be eligible for the EITC paid to me this year instead of the EITC latched onto the tax return in 2011.

If so, I've been employed @ a decent pay rate since late Sept 2010. So yearly income will be pretty low. Do I need to add my UI as an income?

Is the EITC taxable?

If I file for it now, how big of chunks can I get? If I'm allocated the max amount, (pretend) and I have about 5 paychecks left, can the $$ be divided by 5 and given to me?

[taxguykarl]

Unemployment and public assistance are not considered income for purposes of EITC (as you may have noticed last year).

The max for one (1) kid (BTW how's your young one doing?) is $3,043 for income between $8,950 and $16,500.

That sounds like you're asking about the advance EITC. It is not taxable--the monies are simply subtracted from what you would other recieve when you file. Be forewarned: If you gain some income that exceeds the limit to your advance EITC payments, you will owe the difference and very likely a penalty on top of that.

JLG looked into that earlier this year. See how that's working out.

The W-5 form will determine your eligability.

FWIW, most of my clients prefer a 4-figure payment in the winter.