USA Taxes - Earned Income Credit? Refund or Welfare?

I have to disagree with you on this one. Actually it is for parents who are trying and still at poverty level but not getting public assistance. You can only claim 2 children on the EIC. Its a reward for working hard and to help with day care and medical expenses. As far as hiding money its not your minimum wage worker that is hiding money for the purpose of tax evasion. You will not find them sinking their hard earned money in fraudulent charities. It is not as you say easy money for working parents but help they so badly need. The penalty for non reported income far out weighs the couple of thousand dollars extra the EIC provides. For some families its the only time of the year they can purchase such things as cars, or home improvements, get bills paid, braces for their children that sort of thing that otherwise they have to do with out.

Good morning Debbie sorry I did not get back to you yesterday had a real busy day. I did a little research on the EIC and this is what I found. 1) the EIC is the most heavily audited tax credit by the IRS. 2) it was formed to provide relief to hardworking low income families to off set the high SS and medicare taxes 3)It actually promotes work ethics and lowers poverty in low income families. Honestly I believe there to be more fraudulant activities in our welfare system than this Tax credit. Why give people more incentive to not work and live on those taxes we pay so heavily. My oldest Son and his wife claimed the earned income credit for two years their oldest child in now three, this year they did not qualify as there income was above the guidelines. But for two years when they was struggling to finish school(daughter in law in nursing school) it was a blessing. Now they have bought a new home, making enough money to meet there needs and save too. They might not be where they are today if not for that credit which was used to pay tuition. Don't you think the goverment wins in the long run? Now you have a family independant and paying taxes in. No I do not think that money belongs in the public assistance domain. Look how many illegals we have in that system and people we have made so dependant on a welfare system that desperately needs reform. Here in TN we have what is called families first, and what that does is give you a two year span to go to school, get the help you need and go to work. If you have not met your goals by the end of that two years you are just cut off. Not the children mind you they still get aid in the form of medical care and food stamps, but the parents do not get the monies assistance. But even here it is abused. We had a health program called TENN Care and believe it or not it was the doctors and the HMO's that ruined that program with fraudulate services and claims. So no I do not believe at all that this credit should be taken away from hardworking families that want a better life. :)))