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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (467798)	3/31/2009 5:46:12 PM
From: Joe NYC	Read Replies (1) \| Respond to of 1575761

Michael, so 50k earner can be refunded all income taxes and beyond that some or all fica/medicare up to what percentage? The Earned Income Tax Credit is based on Adjusted Gross Income, and no 2 taxpayers with 50k gross income are the same when it comes to how the gross income translates to Adjusted Gross Income. I gave you the figure of $4,824, which is how much cash can be derived from Earned Income tax credit, most of it to offset FICA and Medicare payments. There is even a scenario when one can, on a net basis, pay no FICA + medicare taxes, and get cash back from Uncle Sam. The way the EIC works is that it goes up with income (AGI) until some point where a maximum is reached, and then it goes down as income goes up until it reaches zero. IIRC, the max is in 20-30k AIG range. So it is not a straight percentage. It is a curve, sort of like a bell curve. Joe