Eic - 2005

[fcobarr]

What is the name of your state? Nj

When I filed taxes in 2006 (for 2005) I received a letter from the IRS telling me that based on my filing, I qualify for EIC and if I want them to calculate it - Great...a check came in the mail in July 2006 for approx $4K.

I haven't had any significant income (due to starting a business in 05) and am now in the process of preparing my 06 returns and then my 07 returns so that I'm current. Do I need to include the EIC on my 06 return? If so, is it "other income" or something else? The letters from the IRS never say anything about what to do with the credit on future filings.

Thanks for your help.

 

[TinkerBelleLuvr]

EIC is NOT other income. It is a refundable credit on your tax return. It does NOT need to be reported on future tax returns.

 

[fcobarr]

Thank you.

 

[LdiJ]

EIC is NOT other income. It is a refundable credit on your tax return. It does NOT need to be reported on future tax returns.

However, if you qualify for EIC for 2006 then of course you should include the credit on your return, but not the actual cash you received for the 2005 tax year.