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Author Topic: Tax Credits  (Read 848 times)

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Tax Credits
« on: February 24, 2013, 01:13:16 AM »
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  • It looks like married couples, with 3 kids qualify for over 8k a year in tax credits, if they earn less than 50k per year.  So, if that couple earned 30k, would they basically get everything they paid in taxes and social security back, plus several extra thousand dollars?  



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    Tax Credits
    « Reply #1 on: February 24, 2013, 01:31:43 AM »
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  • I can't vouch for your specific example, but, yes, it is possible to get everything back plus extra.


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    Tax Credits
    « Reply #2 on: February 24, 2013, 04:05:04 AM »
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  • Married filing jointly with three kids income limit to receive any earned income tax credit is $51,567.  The amount of credit is based on income though. In this example filing jointly with 3 kids  the credit would be higher if they earned $16,000 instead of $50,000. If they earned $5,000 instead of $16,000 it would be less too.

    There is also the child tax credit is not refundable but lowers their liability. Some  families may also get the additional child tax credit which is refundable.

    For couples without children they may qualify for earned income credit too but the maximum credit is much less (under $500)  and the income limits are lower.

    I don't know how to figure federal income tax, so not sure about the specific $30,000. Their earned income credit would be over $4,000 though.

    ~Tiffany

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    Tax Credits
    « Reply #3 on: February 24, 2013, 04:33:28 AM »
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  • To use myself as an example, I have no federal tax liability but the earned income credit will pay all of my self-employment tax plus I should get around $800.
    ~Tiffany

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    Tax Credits
    « Reply #4 on: February 25, 2013, 01:44:28 AM »
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  • So, it sounds like you can depend on getting everything withheld from your paychecks back, through the credits and maybe a little extra.  It sure seems hard to find clear and easy to understand tables on the earned income tax credit though.



    Offline Tiffany

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    Tax Credits
    « Reply #5 on: February 25, 2013, 02:46:09 AM »
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  • Quote from: Guest
    So, it sounds like you can depend on getting everything withheld from your paychecks back, through the credits and maybe a little extra.  It sure seems hard to find clear and easy to understand tables on the earned income tax credit though.



    Yes and sometimes a lot extra. It might be 30% or 40% of their yearly income.


    I'm too tired to look it up now but for filing jointly and 3 kids between 13-22K they get the maximum earned income credit amount. Above and below those numbers it goes down.

    This is why h&r block is full of young families with beaters the first week in Feb. April you find he people with nicer cars.  Nobody is chomping at the bit to pay before they need to and those getting thousands back in a refundable credit want to file asap.

    There should be a table in the tax booklet at the library or a pdf on the irs.gov site.


    Offline MaterDominici

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    Tax Credits
    « Reply #6 on: February 25, 2013, 01:48:16 PM »
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  • Quote from: Tiffany
    This is why h&r block is full of young families with beaters the first week in Feb.


    "beaters"?? Is it safe to assume that is a car given the example in the next sentence?

    I'd have had ours filed in January, but am still waiting on forms to be released for e-file thanks to the government's last-minute decision-making. It's all supposed to be ready by Friday, so we'll see.
    "I think that Catholicism, that's as sane as people can get."  - Jordan Peterson

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    Tax Credits
    « Reply #7 on: February 25, 2013, 07:54:06 PM »
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  • Yes, "beaters". Maybe it's a northern expression?

    We called all our old cars "beaters". Growing up, that's all we had in our family! We went from one $500 car to the next -- all from the 1970's. They were huge, gas-guzzling, no A/C, sometimes no heat. They were heavy and made of solid steel. This was back in the 1980's, when gas was under a dollar a gallon.


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    Tax Credits
    « Reply #8 on: February 26, 2013, 01:28:51 PM »
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  • Here's an earned income tax credit calculator for 2012.  

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    Tax Credits
    « Reply #9 on: February 26, 2013, 03:00:22 PM »
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  • Quote from: Guest
    Here's an earned income tax credit calculator for 2012.  


    http://www.cbpp.org/eic2011/calculator/