Can My Earned Income Tax Credit Be Taken?
I was told that before I cash my tax refund to let my lawyer see it or the letter I receive from IRS about my taxes to determine if anything will be taken out for
bankruptcy that I filed and went to court for. I had $2300 taken out already for back taxes from the IRS. That leaves me the money I earned from EIC. The bankruptcy judge said something like that they can't take my EIC because I earned that and they can't take that. It is Saturday and I can't talk to my lawyer about it so I am hoping someone knows. I am wanting to be reassured I guess because I have bills-people to pay that helped me out and my car needs repairs.
Suggestion:
Maybe. It depends on your choice of state or federal exemptions.
{ 2 comments… read them below or add one }
Yes it can be taken…..same as every other tax credit
the judge doesn't know taxes and should not be giving out information he knows nothing about
the EIC is based on earned income credit but it is nothing the person 'earned' it is a credit that was established for low income families when FICA taxes were increased some years ago and became a real burden for low income wage earners–it is a pay back, not anything earned
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