Exemptions In Bankruptcy

14 Nov Wanted-Exemption for Earned Income Credit

The earned income credit, created by 26 U.S.C. 32 (1994), is a refundable tax credit provided for low income workers who have dependent children and who maintain a household. The earned income credit is paid as a tax refund. In other words, if the earned income credit exceeds a person's tax liability, the excess amount is considered an overpayment and is refunded. So, low to middle income workers with children can get a tax "refund" that is more than was withheld from their paychecks. It is designed to make it more beneficial to work than to subsist on public assistance. And since it is a form of public assistance, we the taxpayers fund it.
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