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I wasn't sure where to create this thread so I'll just put it in this forum. This is more of a rant than anything so bare with me. About a week ago I was conversing with my mom and she informed me that one of the neighbors had recently finished paying off her mortgage. I was extremely surprised because this lady is a field worker and she barely purchased her home ten years ago! I began to ask a few more questions and my mom told me that the neighbor would use her income tax return(which averaged about $5,000/yr.) to make extra payments. So in essence, uncle sam paid for the majority of this ladies home, does this seem a little wacky to any else, or is it just me?
I'm not familiar with how field workers get paid. Is she a legal US citizen? Does she pay taxes? If so, that is her own money that she is getting back, so it is just another form of saving your money up for the year, but not at all the best way to do so.
If she is getting more back in taxes than she is paying in because of some low income program, then yes, Uncle Sam is paying off her house.
Without knowing more about her situation, my first instinct is to say "Good for her".
To MikeyKid above, actually in this instance it is uncle sam's money. You really think a field worker was overtaxed $5,000 throughout the year? That's all money she gets back through the earned income credit.
To lacerta, my dad was a field worker when I was a little kid and I still know many people who are field workers, so I know roughly how much they earn. In this instance she is getting such a big refund because she has kids and is low income.
Unless you have seen her income tax returns, you cannot know for certain the neighbor simply didn't claim all dependents in order to use a "forced" method of saving. While not the smartest thing to do, many people use it. Regardless, other low income people get the same "money from Uncle Sam" and blow it - so kudos to the neighbor!
Quote:
Originally Posted by Mike3531
To MikeyKid above, actually in this instance it is uncle sam's money. You really think a field worker was overtaxed $5,000 throughout the year? That's all money she gets back through the earned income credit.
Quote:
Originally Posted by Mike3531
To lacerta, my dad was a field worker when I was a little kid and I still know many people who are field workers, so I know roughly how much they earn. In this instance she is getting such a big refund because she has kids and is low income.
To MikeyKid above, actually in this instance it is uncle sam's money. You really think a field worker was overtaxed $5,000 throughout the year? That's all money she gets back through the earned income credit.
OK - Uncle Sam has no money... Uncle Sam has DEBT which it services with YOUR tax money.
So if what you're saying about "earned income credit" is true (I'm not an accountant), you're still wrong. In that case YOU paid for her mortgage. Now in that regard you just need to look at HUD programs, TARP funds, etc to see how we're all paying for people's mortgages these days.
I wasn't sure where to create this thread so I'll just put it in this forum. This is more of a rant than anything so bare with me. About a week ago I was conversing with my mom and she informed me that one of the neighbors had recently finished paying off her mortgage. I was extremely surprised because this lady is a field worker and she barely purchased her home ten years ago! I began to ask a few more questions and my mom told me that the neighbor would use her income tax return(which averaged about $5,000/yr.) to make extra payments. So in essence, uncle sam paid for the majority of this ladies home, does this seem a little wacky to any else, or is it just me?
As long as she's doing everything legally, and is a legal resident or citizen of the USA I don't see any issue with it.
... that you think an income tax return is "Uncle Sam's money"!
An income tax return is a form where you declare income, deductions,
tax owed, and tax paid. The end of the return is where you settle up
and show whether you have a balance due the government or you
have a refund coming from the government.
An income tax refund is money that can be spent by the recipient.
A return is not money and cannot be used to pay for anything.
About 47 percent of filers will pay no federal income taxes at all for 2009.
Either their incomes were too low, or they qualified for enough credits,
deductions and exemptions to eliminate their liability. That's according to
projections by the Tax Policy Center, a Washington research organization.
Lots of people get refunds in excess of anything they paid in.
This is why people don't get very angry at money that is
wasted by the government. They have no skin in the game.
10 years seems kind of long, paid mine off in 6 years and glad of it.
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