Cookies Galore
Senior Associate
I don't need no instructions to know how to rock
Joined: Dec 19, 2010 18:08:13 GMT -5
Posts: 10,739
|
Post by Cookies Galore on Feb 10, 2011 13:23:56 GMT -5
"How do you feel about EIC" I feel happy that I'm not poor enough to qualify. Exactly.
|
|
Plain Old Petunia
Senior Member
bloom where you are planted
Joined: Dec 21, 2010 2:09:44 GMT -5
Posts: 4,840
|
Post by Plain Old Petunia on Feb 10, 2011 13:25:14 GMT -5
Cousin 1: EIC brings his income up to $24,128.75 Cousin 2: EIC makes her income $27,133.19 Cousin 3: EIC makes her income $12,932.79 (and she lives at home) Tea, EIC is a federal credit, and is not responsible AT ALL for the state income tax refunds. The size of the state income tax refunds seems to indicate that income taxes are being overwithheld. If that is true, then part of the federal refunds is also from overwithholding. We already know that must be true, since the federal refunds exceed the maximum EIC.
|
|
michelyn8
Familiar Member
Joined: Jul 25, 2012 6:48:24 GMT -5
Posts: 926
|
Post by michelyn8 on Feb 10, 2011 13:27:28 GMT -5
|
|
shelby
Well-Known Member
Joined: Jan 17, 2011 21:29:02 GMT -5
Posts: 1,368
|
Post by shelby on Feb 10, 2011 13:42:18 GMT -5
"I dislike all programs which reward having children. "
Yes children are evil, dirty little devils.
|
|
Deleted
Joined: May 3, 2024 20:48:23 GMT -5
Posts: 0
|
Post by Deleted on Feb 10, 2011 13:57:14 GMT -5
"I dislike all programs which reward having children. " Yes children are evil, dirty little devils. This might be true, but what I said is I don't support their parents choice. If you can't afford children without government help, don't have them.
|
|
Deleted
Joined: May 3, 2024 20:48:23 GMT -5
Posts: 0
|
Post by Deleted on Feb 10, 2011 13:57:29 GMT -5
"I think the SSDI should be considered as part of the AGI and lower the EITC payment, but it does not. This makes our income appear much lower, on paper, than it is in reality. And, because it is this way for us, I am sure it is for other people in our situation as well."
I feel the same way about child support, since the credit is so focused on children. I have known people receiving big $$ in child support and getting the EITC. I have no problem with child support and I have no problem with the mother working a lower paying job that fits her schedule, but something really bugs me about a woman driving a BMW and using her tax refund (tax payer's money) to go on a cruise.
|
|
shelby
Well-Known Member
Joined: Jan 17, 2011 21:29:02 GMT -5
Posts: 1,368
|
Post by shelby on Feb 10, 2011 14:03:50 GMT -5
"but something really bugs me about a woman driving a BMW and using her tax refund (tax payer's money) to go on a cruise. "
Yes this is not right, but I cannot imagine this is anywhere close to the norm.
|
|
|
Post by tea4me on Feb 10, 2011 14:04:39 GMT -5
Cousin 1: EIC brings his income up to $24,128.75 Cousin 2: EIC makes her income $27,133.19 Cousin 3: EIC makes her income $12,932.79 (and she lives at home) Tea, EIC is a federal credit, and is not responsible AT ALL for the state income tax refunds. The size of the state income tax refunds seems to indicate that income taxes are being overwithheld. If that is true, then part of the federal refunds is also from overwithholding. We already know that must be true, since the federal refunds exceed the maximum EIC. I am trying to say that with EIC these people are bringing home a decent amount of money every year (at least where I live). Heck, I would love to bring home an additional $5K - and not having to claim it is even better.
|
|
shelby
Well-Known Member
Joined: Jan 17, 2011 21:29:02 GMT -5
Posts: 1,368
|
Post by shelby on Feb 10, 2011 14:06:20 GMT -5
I receive child support and it does seem a bit unfair my ex cannot write any of it off. But if it were counted on the custodial parents income wouldn't that be double taxation?
|
|
Opti
Community Leader
Joined: Dec 18, 2010 10:45:38 GMT -5
Posts: 39,719
Location: New Jersey
Mini-Profile Name Color: c28523
Mini-Profile Text Color: 990033
|
Post by Opti on Feb 10, 2011 14:09:54 GMT -5
Cousin 1: EIC brings his income up to $24,128.75 Cousin 2: EIC makes her income $27,133.19 Cousin 3: EIC makes her income $12,932.79 (and she lives at home) Tea, EIC is a federal credit, and is not responsible AT ALL for the state income tax refunds. The size of the state income tax refunds seems to indicate that income taxes are being overwithheld. If that is true, then part of the federal refunds is also from overwithholding. We already know that must be true, since the federal refunds exceed the maximum EIC. I'm not sure about other states, but I believe NJ allows a version of EIC if you qualify for it on your federal form. Reading the instructions on the New Jersey form it is quite possible to get refunded more back than you paid in state income taxes via EIC and/or property tax credit for homeowners.
|
|
Opti
Community Leader
Joined: Dec 18, 2010 10:45:38 GMT -5
Posts: 39,719
Location: New Jersey
Mini-Profile Name Color: c28523
Mini-Profile Text Color: 990033
|
Post by Opti on Feb 10, 2011 14:21:13 GMT -5
Cousin 1 -> Income $15,108.75 -> Dependents 2 -> Federal Refund: $7,910 -> State Refund: $1,110
Per my booklet cousin 1 would have had exemptions of $4K so cousin 1's tax on a taxable income of $11,108 is $156. At most cousin 1 probably paid in around $200.
More than $800 in free money.
|
|
|
Post by tea4me on Feb 10, 2011 14:36:03 GMT -5
"How do you feel about EIC" I feel happy that I'm not poor enough to qualify. Exactly. I feel if I got EIC I would fly my family to Disney for a whole week - - because I would be able to afford it.
|
|
Deleted
Joined: May 3, 2024 20:48:23 GMT -5
Posts: 0
|
Post by Deleted on Feb 10, 2011 15:19:45 GMT -5
I like it better than many other aids because it seems to aid those working then those not. I would however, like it if they increase the max interest/non income earnings which right now are $3,100. I just think it seems like a random number. I understand that if you have a lot of unearned income you may not need EIC but... I don't know, I just don't like it being so low.
|
|
doxieluvr
Junior Associate
Joined: Dec 30, 2010 11:28:59 GMT -5
Posts: 5,458
|
Post by doxieluvr on Feb 10, 2011 15:56:19 GMT -5
I like it better than many other aids because it seems to aid those working then those not. I would however, like it if they increase the max interest/non income earnings which right now are $3,100. I just think it seems like a random number. I understand that if you have a lot of unearned income you may not need EIC but... I don't know, I just don't like it being so low. I would take a guess that most EIC recipients are not getting even close to $3100 in investment income each year. Many probably are getting less than $20 bucks a year.
|
|
pepper112765
Well-Known Member
Joined: Jan 9, 2011 15:55:30 GMT -5
Posts: 1,812
|
Post by pepper112765 on Feb 10, 2011 16:29:18 GMT -5
I receive child support and it does seem a bit unfair my ex cannot write any of it off. But if it were counted on the custodial parents income wouldn't that be double taxation? You can always let the ex claim the child since you feel it is unfair. Why don't you all alternate years? As an aside, child support is paid with after tax money, and theoretically it is not income to you but the child.
|
|
shelby
Well-Known Member
Joined: Jan 17, 2011 21:29:02 GMT -5
Posts: 1,368
|
Post by shelby on Feb 10, 2011 16:39:25 GMT -5
RE: pepper I know I was responding to Pooks who was suggesting child support should be part of AGI. This is our first year doing this separate I am for sure giving him the whole daycare write off even tho we split it. I am considering letting him claim one child too.
|
|
Deleted
Joined: May 3, 2024 20:48:23 GMT -5
Posts: 0
|
Post by Deleted on Feb 10, 2011 16:40:25 GMT -5
I like it better than many other aids because it seems to aid those working then those not. I would however, like it if they increase the max interest/non income earnings which right now are $3,100. I just think it seems like a random number. I understand that if you have a lot of unearned income you may not need EIC but... I don't know, I just don't like it being so low. I would take a guess that most EIC recipients are not getting even close to $3100 in investment income each year. Many probably are getting less than $20 bucks a year. I guess I was thinking of a stay at home parent whose spouse died and they went back to work, she/he would have to spend down any investments or sell real properties to get this. I guess I thought about this because I just finished doing the rental tax paperwork, lol.
|
|
|
Post by justwhoever on Feb 10, 2011 16:49:18 GMT -5
How do I feel about EIC?
I adore it. Yep that is right. LOVE IT!!!
And because we got it we are going to go on vacation. I'm going to buy a designer handbag(as soon as someone tells me where the heck I can buy one at!?!?) We are going to go out and buy some fancy damn car...oh wait it has to be a HUGE SUV right? Ok and we are going to buy NEW furniture. Ummm, what else? I know I am leaving something out...OH YEAH! I am going to go have my hair done and my nails....both fingers and toes....SO THERE!
For the life of me I know I am forgetting everything that poor welfare people do....yes every single one of them do. Can you all remind me? I do NOT want to f up this poor welfare life. It's such a wonderful life ya know? You should join me.
<Ok...now that it's out of my system. Hahahahaha>
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Feb 10, 2011 17:00:27 GMT -5
"I dislike all programs which reward having children. " Yes children are evil, dirty little devils. This might be true, but what I said is I don't support their parents choice. If you can't afford children without government help, don't have them. Nah, I am generally in favor of tax breaks that support kids. It somehow increases the chance that eventually there will be somebody to at least pay me a little bit of social security. And that there is somebody to defend the country and my interests if needed. Even those without kids can share a little bit of that burden. ;D
|
|
pepper112765
Well-Known Member
Joined: Jan 9, 2011 15:55:30 GMT -5
Posts: 1,812
|
Post by pepper112765 on Feb 10, 2011 17:05:53 GMT -5
RE: pepper I know I was responding to Pooks who was suggesting child support should be part of AGI. This is our first year doing this separate I am for sure giving him the whole daycare write off even tho we split it. I am considering letting him claim one child too. I am not sure he can claim the childcare without claiming the child but could be wrong about that. I don't think child support should be counted towards AGI because if the parents were together it wouldn't be. Alimony is considered income because it is income to the ex-spouse. Child support is for the child and therefore should not be included in the income of the parent receiving it.
|
|
Deleted
Joined: May 3, 2024 20:48:23 GMT -5
Posts: 0
|
Post by Deleted on Feb 10, 2011 17:11:26 GMT -5
When you say "refund" - did she have anything withheld, or was her tax liability actually a credit of $7,020? I mean - I could get a $50,000 refund if I wanted to - I just have to up my withholdings by an extra $1000 per week. Cousin with Income of $15,108.75 -> Federal Tax Withheld : $658 -> State Income Tax: $211.94 -> Medicare Tax Withheld: $ 219.08 -> Social Security Tax withheld: $936.74 Cousin with Income of $18,027.19 -> Federal Tax Withheld : $987.48 -> State Income Tax: $255.77 -> Medicare Tax Withheld: $ 261.39 -> Social Security Tax withheld: $1,117.69 zCousin with Income of $7,673.43 -> Federal Tax Withheld : $109.48 -> State Income Tax: $116.52 -> Medicare Tax Withheld: $ 111.26 -> Social Security Tax withheld: $475.75
|
|
Deleted
Joined: May 3, 2024 20:48:23 GMT -5
Posts: 0
|
Post by Deleted on Feb 10, 2011 17:14:21 GMT -5
"How do you feel about EIC" I feel happy that I'm not poor enough to qualify. Same here... I don't envy them at all. For my cousin still living at home, it will definitely be helpful in helping her set up things for her new born and make it easier on her. As for the other two, they usually use it as their emergency savings for when something pops up during the year, pay off some debt or things that their kid might have needed during the year.
|
|
Deleted
Joined: May 3, 2024 20:48:23 GMT -5
Posts: 0
|
Post by Deleted on Feb 10, 2011 17:23:45 GMT -5
Tea, EIC is a federal credit, and is not responsible AT ALL for the state income tax refunds. The size of the state income tax refunds seems to indicate that income taxes are being overwithheld. If that is true, then part of the federal refunds is also from overwithholding. We already know that must be true, since the federal refunds exceed the maximum EIC. I'm not sure about other states, but I believe NJ allows a version of EIC if you qualify for it on your federal form. Reading the instructions on the New Jersey form it is quite possible to get refunded more back than you paid in state income taxes via EIC and/or property tax credit for homeowners. All three of them live in NJ and part of their NJ refund is 20% of the EIC that they got from their federal return. The Actual saying on Turbo Tax is: Earned Income Credit Results Based on the information entered in your federal return your New Jersey Earned Income Credit (EIC) is $ XX. This is 20% of your Federal Earned Income Credit
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 5,893
|
Post by haapai on Feb 10, 2011 17:23:52 GMT -5
Thanks cawiau, that's helpful, or depressing, depending on how you look at it.
Even if you were able to convince all three cousins to claim six federal exemptions (totally legal, BTW), it wouldn't smooth their income much.
Receiving one third or more of your annual net income all at once cannot be good for anyone.
|
|
|
Post by tea4me on Feb 10, 2011 17:28:13 GMT -5
Receiving one third or more of your annual net income all at once cannot be good for anyone. It would be great for me. I wouldn't have to worry how I am going to pay property taxes or insurance or other expenses that come up.
|
|
Cookies Galore
Senior Associate
I don't need no instructions to know how to rock
Joined: Dec 19, 2010 18:08:13 GMT -5
Posts: 10,739
|
Post by Cookies Galore on Feb 10, 2011 17:46:46 GMT -5
Receiving one third or more of your annual net income all at once cannot be good for anyone. It would be great for me. I wouldn't have to worry how I am going to pay property taxes or insurance or other expenses that come up. Sure it would, you already said you'd take that money and go to Disney World.
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,206
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Feb 10, 2011 18:27:27 GMT -5
Having been both an IRS agent and a tax preparer, I came to dislike the EIC. There is a lot of fraud involved in this credit. I've heard too many single parents who know exactly where the bell curves give them the highest amount of EIC, so they will quit their jobs to get the higher amount of EIC. I have also had people sitting in front of me and listened to them say they would have to have another baby so they would continue getting the EIC. That isn't helping people.
I would hear their plans on how they would be using the EIC and it often isn't going directly to help the children. I was there was a program where the money was set up to directly help the kids and not the parents. Then I would be all in favor of it.
I will never be in favor of having more babies just to get the EIC.
|
|
shelby
Well-Known Member
Joined: Jan 17, 2011 21:29:02 GMT -5
Posts: 1,368
|
Post by shelby on Feb 10, 2011 18:43:38 GMT -5
I hear all the time about people having more kids to get more welfare or more EIC or whatever (although I am sure it happens) I cannot believe people would do this. So say you get $7k back in EIC but the new baby cost you $8k. You get extra food stamps or whatever but the baby cost you more than the benefit. Not only that but the time to take care of children is 24/7 so if you look at kids like a meal ticket you are willing to get paid what like 5 cents an hour. Crazy is all I can think if people say having kids gets them more. Because lets be honest if you are doing your job right as a parent it is harder than any fulltime job that most defiately will pay more than 5 cents an hour.
|
|
Deleted
Joined: May 3, 2024 20:48:23 GMT -5
Posts: 0
|
Post by Deleted on Feb 10, 2011 18:51:40 GMT -5
"I don't think child support should be counted towards AGI because if the parents were together it wouldn't be. Alimony is considered income because it is income to the ex-spouse. Child support is for the child and therefore should not be included in the income of the parent receiving it."
I agree with you, except where the EITC is concerned. It is so focused on children, that I think it should look into other money the child is receiving. I am thinking of cases where the mother is low earning and the noncustodial parent is high earning and pays child support based on a percentage of his/her income. If they were still married, there is no way the family would qualify for the EITC.
|
|
DVM gone riding
Senior Member
Joined: Dec 20, 2010 23:04:13 GMT -5
Posts: 3,383
Favorite Drink: Coffee!!
|
Post by DVM gone riding on Feb 10, 2011 21:34:52 GMT -5
Nice to know my money goes to someone!! Because what they are getting back is about what I pay in-in a year not at tax time. Actually I pay a little more. I think we could solve all of the budget issues by eliminating EITC dumb idea in the first place if you ask me, why should the Fed gov give you money in a lump sum that you never paid into the system.
|
|