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Originally Posted by kutulu
People are always saying that the poor get back thousands of dollars more than they paid in because of things like the EIC and such but I've never seen one sample tax return here or anywhere else that shows a person paying a negative tax rate (ie not just paying $0, but paying $0 and still getting a 'refund')
Unless someone can back that shit up it needs to stop. We have enough people talking out their collective asses and we don't need it anymore. Someone here was going to do so on another thread but never replied. I wonder why.....
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You are referring to me, in this thread:
LINK
My post to you was:
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Originally Posted by KMA-628
Kutulu -
My wife is making up a hypothetical return in a few minutes (she is a tax accountant) and I will pass it on when I get a chance.
Basically: Married filed Jointly gets EIC if their income is under $35,458. Then, you add in the standard deductions, the kid deductions and you will see that the hypothetical family of four will get back more than they paid.
That doesn't count additional deductions, i.e. if they own a house, etc.
Basically, as you go down the income ladder from $35K the less you pay in taxes and the more you get back.
Kinda hard to cite sources since this is all under IRS rules, that is why she (my wife) is using her tax software to make a hypothetical return based on $30K, average withholding, etc.
The burden really isn't in the $35K and under, it is the $35K to $115K range. That is the range, in my opinion, that feels it the most come 4/15.
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Your reponse was:
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Originally Posted by kutulu
Have fun with it. I've never qualified for the EIC so I really don't know much about it.
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Based on that response, I didn't post the example. You conceded you knew nothing about it and were kinda flippant about it, so why should I put any effort into it.
Well.....here you go:
Form: 1040
Line 22 (Total Income) - $39,500
Line 39 (Itemized Deductions- family with three kids) - $9,700
Line 41 (# of exemptions times $3,100) - $15,500
That brings our taxable income down to: $14,110
Income Taxes paid: $3,133
Tax Burden: $350
Amount of tax return (includes child tax credits): $5,048
So.......
Let's sum this up:
Amount paid in income taxes: $3,133
Amount received in tax return: $5,048
And that is without using the EIC. If the total income was smaller EIC could've been applied making the tax return even bigger.
So, in response to this:
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Originally Posted by kutulu
I've never seen one sample tax return here or anywhere else that shows a person paying a negative tax rate (ie not just paying $0, but paying $0 and still getting a 'refund')
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Well, you know have.