How to get earned income credit with rental property?
Any way to get it?
Its just not fair to the kids to hold back EIC and child tax credits just because someone makes over $3000.00 in rent. Hmm..but then property taxes and impact fees are usually not fair either.
Sat Feb 09, 2013 6:14 am
oldguy Senior Member
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The rent doesn't count as investment income (the $3200 limit), rent couns as earned income from a salary and/or a business. So if you are within the limits of the table (eg, $45,060 and so) you are OK for EITC.
quote: 2012 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
$45,060 ($50,270 married filing jointly) with three or more qualifying children
$41,952 ($47,162 married filing jointly) with two qualifying children
$36,920 ($42,130 married filing jointly) with one qualifying child
$13,980 ($19,190 married filing jointly) with no qualifying children
Tax Year 2012 maximum credit:
$5,891 with three or more qualifying children
$5,236 with two qualifying children
$3,169 with one qualifying child
$475 with no qualifying children
Investment income must be $3,200 or less for the year.
Sat Feb 09, 2013 4:34 pm
Sarchus Member
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quote:Originally posted by oldguy The rent doesn't count as investment income (the $3200 limit), rent couns as earned income from a salary and/or a business. So if you are within the limits of the table (eg, $45,060 and so) you are OK for EITC.
quote: 2012 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
$45,060 ($50,270 married filing jointly) with three or more qualifying children
$41,952 ($47,162 married filing jointly) with two qualifying children
$36,920 ($42,130 married filing jointly) with one qualifying child
$13,980 ($19,190 married filing jointly) with no qualifying children
Tax Year 2012 maximum credit:
$5,891 with three or more qualifying children
$5,236 with two qualifying children
$3,169 with one qualifying child
$475 with no qualifying children
Investment income must be $3,200 or less for the year.
Wow interesting and possibly means that the IRS owes me thousands of dollars from a few years back. The IRS and at least three different tax companies also insisted that any amount over $3,200 on line 17 (total income from rentals, royalties, partnerships, S-corporations, and trusts) of 1040 makes one ineligible for EIC and Child tax credit.
Are you saying to use a schedule C instead of E for rental property
Sat Feb 09, 2013 8:50 pm
prioritytaxgroup Contributing Member
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Location: usa
If someone rented the property at fair market value, the schedule E would include both the rental income as well as the valid rental expenses on line 21 which INCLUDES depreciation. For most individuals, the depreciation pulls the income into a loss...and the loss wouldn't prevent him/her from claiming EIC.
