Is anybody else as upset about this as I am-

[jfulcer]

Originally posted by wvjules
I have a question. I'm one of those lowly single mom income's that's barely making it. (Well, I was until I was unemployed.) But last year I cashed in my 401K which ended up putting me over the EIC limit not to mention the fact that I had to pay $836 federal taxes. So I didn't get to claim the EIC, but I did (I think) get the Child Tax credit. So, if I get a refund of $400, I'll end up owing next year AGAIN????? If that's the case, then I don't want the money. I don't want to have to pay next year.

I don't think that $400 is going to cause your income to go up so much that you wouldn't qualify for the EIC. Cashing in the 401k is going to bump up your income, but I'm supposing the goverment hopes you <i>don't</i> cash in your 401k and keep your investments.

Did you do your own taxes? I wonder if there would be a way to spread the 401k income over more than one year in some way shape or form. I'm not an accountant, but it may be worth it to check into it - you can still file an amended return if you can. Maybe then you can qualify for the EIC.

 

[wvjules]

I cashed it out last year in one lump sum. That's why I owed. I know the refund won't put me past the EIC limit this year, I'm no where near it. BUT if I do get the reufnd in July, will I have to pay next year???? Am I making sense? LOL

 

[Steve H.]

Originally posted by wvjules
I cashed it out last year in one lump sum. That's why I owed. I know the refund won't put me past the EIC limit this year, I'm no where near it. BUT if I do get the reufnd in July, will I have to pay next year???? Am I making sense? LOL

You shouldn't have to pay, no. The credit is, in essense, an advance on your child credit for 2003's taxes, so when filling out your 2003 taxes, you'll factor in whatever refund you may get this summer and determine if you qualify for any additional credit (up to $1,000, including the $400 credit this summer). If you don't qualify, you won't necessarily owe the money back, rather, you just won't have any additional child credits on your taxes for 2003.

 

[December99]

I still make under $26K and because I got married - I lost being able to use the EIC. And all because I use to be a single parent, making very little money, getting very little support from my ex for my dd. Now I'm still not getting much support or money from my ex and personally I think my dd is my responsibility, not my new husband's because it isn't his kid although he does help when I need it. And now that I'm married I have to pay and lose the EIC. So getting this tax credit is a much needed item.

 

[KathyTX]

Originally posted by Maray

(from the quoted article)

Then please forward this to anyone else you think believes in basic fairness.

There is no basic fairness in the current tax code. For basic fairness, we need a flat tax plan.

I am not wealthy, but I won't qualify for the credit this summer. Many of my deductions are disallowed because of my income.

I do have sympathy for the single parents who struggle by on inadequate incomes. But that doesn't make taking my money and giving it to you fair taxation.

 

[caitycaity]

i'm a democrat, but i agree with kathy tx. the tax code as it stands now is anything but fair.

i also think it's ridiculous to give a "refund" to people who haven't paid in the first place. let's look at the origins of the word "refund." in order to RE-fund, the person would had to have paid in the first place.

 

[Bunchkin]

I'm another who agrees that if you didn't pay in the first place you are owed nothing!! It's simple give and take. If you didn't give you don't get to take back.

I love people who support a 'bleeding heart' idea without fully researching both sides of the topic.

Gimme a break!!!!

 

[hmp2z]

And I love how Americans are essentially being paid to breed. Our country is dangerously underpopulated...

 

[Miss Jasmine]

Oh how I love the "breeder" comments.

As far as the tax issue goes, I agree with the others that said this is a refund, you have had to pay in the first place to get it back.

 

[AirForceRocks]

I'm sorry, am I supposed to be upset that people that aren't paying any federal income tax won't get a BIGGER check back in the mail than they are already? Is that the point of this thread?

If so, then please count me out. I have no problem whatsoever with low income people not paying income tax, but I do have a problem with sending those people a check at the end of the year.

And I have a bigger problem with people that whine and cry because the non-payers won't be getting a bigger check at the end of the year.

 

[AirForceRocks]

Originally posted by kejoda
Well you know we gotta keep the rich people rich.

Thanks for posting this Maray, I'll be signing up to for this.

I would respectfully recommend that you actually do some research on this before you make more ignorant comments such as this one.

 

[Mskanga]

Originally posted by hmp2z
And I love how Americans are essentially being paid to breed. Our country is dangerously underpopulated...

Nobody is paying anyone to breed here, we are just getting some of the money we paid back, and I don't see anything wrong with that.
FYI, other countries do pay people every month for having children.

 

[wvjules]

FYI, other countries do pay people every month for having children.

FYI, so does this country. It's called welfare. My ex-SIL is making a killing!

 

[AirForceRocks]

Originally posted by wvjules
FYI, so does this country. It's called welfare. My ex-SIL is making a killing!

My SIL used to do the same thing wvjules..."somehow", the state found out about what she was doing, and it stopped...

 

[DonnaS]

Some other countries pay independent of income. Germany pays "kindergeld" (child money). I may have the details wrong as it has been a while since I talked to DH's aunt about it, but I believe they pay for the woman to stay home and raise their children. Overall, I believe they have a declining population though.

DH's aunt is a physician as is her husband and they receive money each month for their two children. She is able to work part time in her husbands office and still receive the money.

However, they have a socialist government.

 

[hmp2z]

Originally posted by Mskanga
Nobody is paying anyone to breed here, we are just getting some of the money we paid back, and I don't see anything wrong with that.
FYI, other countries do pay people every month for having children.

Never said other countries didn't pay people to breed! I pay taxes, just like everybody else (in fact, more, b/c I haven't reproduced as of yet so won't get as much money back!).
But I'm with ya - this country definitely needs more people in it. Think about areas like Texas, that are still full of wide open spaces. Got to fill them up! Keep those babies coming, George Bush!

 

[AirForceRocks]

Keep those babies coming, George Bush!

Yeah, because God knows, with a $1000 credit, people are turning a huge profit on every child...

 

[DonnaS]

Heck I might even decide to have kids now.

 

[hmp2z]

Originally posted by AirForceRocks
Yeah, because God knows, with a $1000 credit, people are turning a huge profit on every child...

Well, they chose to have kids, so presumably they weighed the cost and decided that it was worth it to have X amount of offspring. But how great, that we can find a small way to reward them for it! GOOOOO USA!

 

[Miss Jasmine]

I had to look at the user name a couple times. Sounded familiar.