Earned income tax credit???

[C.C]

Originally Posted by NHartphotog

I despair of the intelligence of the American people when a simple scam like taking the money from your paycheck bi-weekly, instead of annually, fools people into thinking the cost of federal government is acceptable.

Also setting withholding rates so most get a sizable refund makes them think they're coming out ahead!

[C.C]

Originally Posted by ovcatto

Even if you are self-employed you can pay your estimated tax liability on a quarterly basis so that you won't have to pay income and social security taxes in one large sum at the end of the year.

Now back to testing the validity of your story.

In order to receive a EITC for 2009, your MAXIMUM adjusted gross income would have had to be less than $35,463 ($40,463 married filing jointly) with one qualifying child in order to receive the maximum credit of $3,043.

EITC Income Limits, Maximum Credit Amounts and Tax Law Updates


Yet when I calculate your yearly tax liability you come out owning the Federal government $1,409. So, I am dying to know how you warranted a $3,000 EITC.

$35K with 3 kids gets you there. OP cites the EITC but the extra child credits and $800 MWP credit account for part of it...

[ovcatto]

Originally Posted by C.C

$35K with 3 kids gets you there. OP cites the EITC but the extra child credits and $800 MWP credit account for part of it...

Thanks.

But the tale smells.

[BentBow]

Originally Posted by NHartphotog

You have quarterly estimated payments on future income, if I'm not mistaken.

You didn't read the original post.
Because of low cash flow, I have not paid quarterly in 2 years, since 2007. I have not paid quarterly yet this year, either.

It is not mandatory that you pay quarterly.
Like I said, I paid nothing in at all.
My wife is also self employed and we have one school age daughter, we file jointly.


My actual income in 2009 was down 6 times what it was in 2006
2007 it was almost half of 2006.

I have always banked money during good times. I learned long ago, my line of work is feast or famine. I could make it a couple of years without working, if I cut it real tight.

I'm not hurting by any means, yet here is this handout?
That makes no sense to me.
I feel like I did something wrong. I certainly didn't ask for it.

Is it just me, or is this totally wrong?

[C.C]

Originally Posted by BentBow

You didn't read the original post.
Because of low cash flow, I have not paid quarterly in 2 years, since 2007. I have not paid quarterly yet this year, either.

It is not mandatory that you pay quarterly.
Like I said, I paid nothing in at all.
My wife is also self employed and we have one school age daughter, we file jointly.


My actual income in 2009 was down 6 times what it was in 2006
2007 it was almost half of 2006.

I have always banked money during good times. I learned long ago, my line of work is feast or famine. I could make it a couple of years without working, if I cut it real tight.

I'm not hurting by any means, yet here is this handout?
That makes no sense to me.
I feel like I did something wrong. I certainly didn't ask for it.

Is it just me, or is this totally wrong?

Nothing wrong with it, it's just a result of our one-size-fits-all policies. Look at unemployment - some families struggle to get by with no income other than UIC, but a laid off mother with a high-income husband gets the same 99 weeks, and with savings on day care etc. might be financially better off on UIC than working!

If you don't fell comfortable taking it, why not just send it back as an estimated 2010 payment? You'll be giving it back to the government at some point anyway...

[SuzyQ123]

I don't understand it either. I work at a little call center with a bunch of young single moms. We make about $10,000 a yr and are part time. So tell me how in the world these women should be getting a tax refund of $6,000????