Did I miss the yearly EIC debate?

[Free4Life11]

It's always a lively time! Did I miss it this year? We've been having a fun discussion about it at work.

 

[Toby'sFriend]

no, I don't think I've seen one yet.


Care to start?

 

[m&m's mom]

EIC to me means "Earned Income Credit". I feel sure that is not what you are referring to. After 7 years on the DIS I admit I am lost on this EIC.

 

[mickeyboat]

I think it DOES mean EIC. I am sick of listening to my DH complain about it.

 

[Miss Jasmine]

I haven't seen one yet, either. Maybe it's because no one has posted about how he or she is using his or her refund that included the EIC to finance a trip to WDW.

 

[Free4Life11]

I haven't seen one yet, either. Maybe it's because no one has posted about how he or she is using his or her refund that included the EIC to finance a trip to WDW.

That could be it.

And yep I was referring to EIC = Earned Income Credit.

 

[m&m's mom]

I haven't seen one yet, either. Maybe it's because no one has posted about how he or she is using his or her refund that included the EIC to finance a trip to WDW.

EIC is not an end of the year refund, it is an every payroll calculation that determines if an employee qualifies to not have Federal Income Tax w/held to begin w/.
If an employee did not have to pay Federal Income Tax (FIT) the previous year, they can complete a W5 to be considered for EIC in the current year. I would anecdotally think that if they did not make enough to pay any income tax that they would not make enough money to go to WDW, but hey, this is the DIS and anything is possible.

 

[Cindy's Mom]

what is the debate usually....that if you get a refund, you are not a good planner because then Uncle Sam has your money and people argue about how they know better than others on how to manager THEIR money?

 

[tink_n_pooh]

I thought that EIC was a refund for making less than X amount in a year. A friend of mine is getting EIC this year and I can't say that I think it's a great thing. She may not make very much but she doesn't live on her own, doesn't pay her own expenses, basically just works part time for some spending money. I can understand a rebate for people who are truly in need but too many people work the system. Maybe she could use her EIC to fund a trip to disney...

 

[Tybug]

EIC is not an end of the year refund, it is an every payroll calculation that determines if an employee qualifies to not have Federal Income Tax w/held to begin w/.
If an employee did not have to pay Federal Income Tax (FIT) the previous year, they can complete a W5 to be considered for EIC in the current year. I would anecdotally think that if they did not make enough to pay any income tax that they would not make enough money to go to WDW, but hey, this is the DIS and anything is possible.

Yes, they can but that does not mean they will. Being a travel agent I know plenty of people who use that refund each year to finance a trip of some sort. And they have no problems admitting how wonderful it is that they qualify for EIC.

 

[m&m's mom]

Ok, I stand partially corrected. I was thinking about what I program in my little world. Apparantly, you can get back even more than you put in to begin w/.
I do remember prior years "discussions" about this. Yes, if you are that low a wage earner WDW would/should probably not be a top priority.

 

[ckay87]

Doesn't everyone deserve a trip to WDW?

 

[shirleyb]

Doesn't everyone deserve a trip to WDW?

Deserve?

As in, like it is a right? Or deserve, as in, wouldn't everyone like a trip to WDW?

 

[M 'n C]

I think I saw the beginning of a debate a month or two ago on the budget board. It wasn't too exciting so you didn't miss anything.

 

[ducklite]

I would love to see the EIC come with a caveat that it must be used for education, retirement savings, home ownership/repairs, or something along those lines.

Unfortunately the way it's currently set up it's nothing more than a no strings attached welfare check for the working poor, many of which lack the sufficient money management skills to have anything to show for it two weeks after they get it.

I also feel that it encourages a lot if cheating on tax returns by lower income individuals where one parent files at a different address so that the one claiming head-of-household can get a credit that if they really aren't eligible for based on teh joint income. I know of at least two couples who had been doing this for years--one got caught in a random audit and it wasn't pretty. They still don't understand why it wasn't OK to be making $60K a year between them and not get the credit because "everybody they know does."

I'm not saying that it should or shouldn't be eliminated, but I think it needs to be rethought.

Anne

 

[ckay87]

Deserve?

As in, like it is a right? Or deserve, as in, wouldn't everyone like a trip to WDW?

Oh I'm just kidding. Chose the wrong smilie to convey that. How bout

 

[shirleyb]

Oh I'm just kidding. Chose the wrong smilie to convey that. How bout

Gotcha!

 

[LisaNJ25]

Ok, I stand partially corrected. I was thinking about what I program in my little world. Apparantly, you can get back even more than you put in to begin w/.
I do remember prior years "discussions" about this. Yes, if you are that low a wage earner WDW would/should probably not be a top priority.

yep.... thats what annoys me about it... making little and getting what you paid in is one thing.. getting thousands more than what you paid is a bunch of BS.

 

[Simba's Mom]

I would love to see the EIC come with a caveat that it must be used for education, retirement savings, home ownership/repairs, or something along those lines.

Unfortunately the way it's currently set up it's nothing more than a no strings attached welfare check for the working poor, many of which lack the sufficient money management skills to have anything to show for it two weeks after they get it.

I also feel that it encourages a lot if cheating on tax returns by lower income individuals where one parent files at a different address so that the one claiming head-of-household can get a credit that if they really aren't eligible for based on teh joint income. I know of at least two couples who had been doing this for years--one got caught in a random audit and it wasn't pretty. They still don't understand why it wasn't OK to be making $60K a year between them and not get the credit because "everybody they know does."

I'm not saying that it should or shouldn't be eliminated, but I think it needs to be rethought.

Anne

Um, I agree-but I'll hide and pretend I didn't say that. That's because I'm a volunteer for the IRS, preparing taxes for the poor, almost all of whom qualify for the EIC. In actuallity, what happens some times, at least around here, is people who are getting huge refunds(think $5000 when they earn $18000, actual case) just take off from work and party! I'm going to try to step slowly away now.

 

[Cool-Beans]

Doesn't everyone deserve a trip to WDW?

Yes, everyone deserves a trip to WDW. But then everyone also deserves to decide if they want to pay for someone else's trip. That's where the problem comes in.

I have a friend who gets about $4000 "back" that she never paid in the first place. She buys jewelry with it and pays for her kids' school. I don't begrudge her the money. If it is available, she should take it.

I just don't think it should be available.

Every citizen should pay the same percentage. Anything else is not equal...and unfair.