will5144[at]aol.com (Will5144) wrote:

- quote -

As long as the AGI limits are met (& you include the $12,000
in your AGI), then taking an IRA distribution wouldn't
preclude you from qualifying for the EIC.

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"Will5144" <will5144[at]aol.com> wrote:

- quote -

The IRA distribution is included in your adjusted gross
income (AGI). As you say assuming you otherwise qualify,
you generally will qualify for EITC if your 2003 AGI is less
than $29,666 with one qualifying child or less than $33,692
with two or more qualifying children. If you are married
each respective limit is slightly higher. For more
information, see the 2003 edition of IRS Publication 596.

http://www.irs.gov/pub/irs-pdf/p596.pdf

If you are less than age 59½, the distribution is subject to
the 10% early distribution penalty unless an exception
applies. For more information, including a list of
exceptions, see Form 5329 and instructions.

http://www.irs.gov/pub/irs-pdf/f5329.pdf

http://www.irs.gov/pub/irs-pdf/i5329.pdf

Barney Byrd

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Will5144 wrote:

- quote -

To the extent that it changed your AGI, yes.

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"Will5144" <will5144[at]aol.com> wrote:

- quote -

It may not prohibit it, but it will impact the amount of the
EITC you get. It may also cost you a 10% penalty unless you
are also over age 59 1/2 plus income tax on that amount.

Wayne Brasch, CPA, M. S. Taxation

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- quote -

If that 12K tosses your income over the EIC threshhold, yes.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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Will5144 wrote:

- quote -

Quick answer: Maybe! The EITC is a function of both earned
income and AGI. You need to work your way through the
eligibility checklist or the rules to see if your AGI is
above the threshold. The threshold varies depending upon
which category (1 child, 2+ children, No child) you are in
and your filing status.

See IRS Pub 596: http://www.irs.gov/publications/p596/index.html

--
Alan
http://taxtopics.net

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will5144[at]aol.com (Will5144) writes:

- quote -

If your adjusted gross income exceeds the limits, YES!!!=(:

In spite of that = Happy New Year!!=

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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Quick question: Does the fact that I took a $12000
distribution from my traditional IRA this year prohibit me
from claiming the EITC, assuming I am otherwise qualified?
Thanks

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