I know someone that paid in 650.00 and got a $5,000.00 refund with one child. Don't believe it if you don't want but it happens everywhere.
Tax Credit is just that, a credit from taxes. It has nothing to do with what you paid in.
Earned income tax credit - Wikipedia, the free encyclopedia
the maximum she could have gotten from EIC, if she had reached the high income plateau, is about $3000.
this, from the link:
For tax year 2010, the maximum EIC for a person or couple without qualifying children is $457, with one qualifying child is $3,050,
NOTE!
that was the most confusing thing i have ever read....boy are our taxes messed up....if i said i understood 10% of their explanation of the EIC i would be exaggerating!
I have no problem with the EIC....it gives poor people a reason to work, and not sit on their bums collecting TANF(welfare)....
if the EIC were not given, then with some of the poor, they would be better off on welfare....the EIC, brings the workers up to the level of earning what they would be given in welfare, if they were not working.
It would be better if the private businesses would pay them more than below poverty wages....but what can we do about that????
the couples making $40k that can still qualify for the earned income credit is a bit much imho, but for the poorest, I think it is a good thing...it keeps them working vs not....and working builds ones self esteem and teaches their kids something about life that sitting on their bums collecting welfare wouldn't.
That's just how I see it.