The EIC calculation is based on these numbers, stipulated by IRC §32, some adjusted for inflation:Credit Base: this is the income that qualifies for the maximum credit. Credit percentage: for earned income which
Even if the Foreign Earned Income Exclusion (FEIE) excludes all your income, self-employed taxpayers must still payself-employment taxon their net business income. This is because the FEIE only exempts foreign earned income from income tax. It does not exempt self-employment taxes, which fund So...
Does an income account have a normal debit or credit balance? The normal balance for a contra-asset account would be which of the following? a. a credit b. a debit c. sometimes a debit and sometimes a credit d. never a debit and never a credit Are Acco...
Statutory definitions of earned income can be found in IRC sections 32 and 911. Section 32 (c)(2)(A) defines it for purposes of the earned income credit as any wages, salaries, tips and other employee compensation that are includible in gross income for the taxable year, plus the amount...