Refunds from tax cut bill

[Christine]

Jeff,
Thanks for the information. I make actually call my insurance pland and discuss this with them.

 

[Fizban257]

Just chiming in with the other DC area folks, here! $100,000 aint wealthy in this neck of the woods, but I'd sure love to have it, gross, adjusted or otherwise. We've got a little townhouse in the suburbs that we outgrew 45 minutes after we moved in. If we go through with our plans to grow the family again this summer, we'll have to try and figure out how to get a single-family house in this ridiculous market.

 

[mrsmom]

Christine,
I pm'ed you, please read. it might help
Kim

 

[AirForceRocks]

Originally posted by ryanpatricksmom
Actually, your AGI is before the itemized or standard deduction.

And unless I'm mistaken, only non-Roth IRA contributions can be deducted.

 

[ryanpatricksmom]

Originally posted by AirForceRocks
And unless I'm mistaken, only non-Roth IRA contributions can be deducted.

There are a few other things, like alimony paid and such, but as a general rule most people have additions to their earned income not subtractions prior to the AGI line.

 

[Kevin&Becky]

I corrected my prior post on AGI what I meant for deductions was pre-tax itiems such as health care premiums from your company sponsered plan, 401k deductions and flexible spending deductions....

Here is the definition of AGI

Adjusted Gross Income (AGI)
Income (including wages, interest, capital gains, income from retirement accounts, alimony paid to you) adjusted downward by specific deductions (including contributions to deductible retirement accounts, alimony paid by you); but not including standard and itemized deductions.
AGI is the number you write at the bottom of page 1 of your 1040 form, and then copy again to the top of page 2.

 

[ryanpatricksmom]

Sorry Kevin and Becky, since you had posted regarding your mortgage interest, I thought that you were referring to itemized deductions. Glad we got that cleared up!

 

[disneychrista]

I am not sure if this has been answered or not, I don't want to read all 4 pages of posts but, to figure out how much , if any, child tax credit you will receive, look at your 1040 form. Where you put the child tax credit for this year. Use the $1000 figure instead of the $600 figure. You will only recieve the difference between what you paid and what you would have paid. In any case you will not recieve more then you "paid" for the year 2002.

So if you paid $347 for year you will only receive $347.

If you paid $954 you will recieve the full $400.

 

[nancy679]

I also believe that its $400 for the frst 2 kids ,then its a sliding scale for any additional children. ( I read that in the paper yesterday)

 

[Colleen A.]

They have also excluded families earning between $10,000 and $26,000.

 

[Steve H.]

Originally posted by Colleen A.
They have also excluded families earning between $10,000 and $26,000.

Actually, they would have been excluded anyways -- there was a provision originally in the bill that gave those families the refund despite not qualifying otherwise, but it was one of the last things cut in order to get the total cost down to $350 Billion.

 

[Toby'sFriend]

Most families with those lower income amounts cannot take the full credit because they are already paying $0 in Federal Income taxes. Allowing additional amounts would be refunding taxes beyond what they pay. Almost all of these families are already receiving the Earned Income Credit.

There are special provisions for Families with 3 or more children that will also refund Payroll Taxes (Medicare and SS) up to the $1k per child total if the Earned Income Credit is not already doing so. This is not part of the "new" law, it was already in effect.

 

[Steve H.]

Originally posted by nancy679
I also believe that its $400 for the frst 2 kids ,then its a sliding scale for any additional children. ( I read that in the paper yesterday)

No, I don't think that's accurate. There is no sliding scale in the tax cut bill.

 

[ryanpatricksmom]

Keep in mind that if your family's AGI is between $10,000 and $26,000 and you also have a child(ren), there's generally no tax being paid to credit.

Sorry TF, we were posting at the same time. I really do read what others write.

 

[peg2001]

I would like to invite everyone living in the D.C. area, and other areas of very high cost of living expenses, to move to East Tennessee! A decent 2,000 square foot home in a decent neighborhood can be bought easily for about $100K. $300K would buy a VERY nice home in a very nice neighborhood. There is also no state income tax. We are close to the beautiful Smokey Mountains National Park.

Keep in mind, however, that income levels and money spent on education are one of the lowest in the nation!

Peggy

 

[katerkat]

Steve, I'm still waiting for that tax loophole that allows me to claim the cats as dependents. Find it for me yet?

 

[Toby'sFriend]

Steve, I'm still waiting for that tax loophole that allows me to claim the cats as dependents. Find it for me yet?

Cat Lovers need better Lobbyists.

 

[jrmasm]

Tax credits for large dogs and ponies first. They cost way more to feed!!!

 

[Fizban257]

Originally posted by jrmasm
Tax credits for large dogs and ponies first. They cost way more to feed!!!

Yes, but my cats listen about as well as my kids so I should get to claim them! I also want to claim my invisible child: Not Me. Every time something gets broken, lost, etc. the boys assure me their brother, Not Me, did it. That little guy costs me a fortune every year and I want the deduction!

 

[Steve H.]

Originally posted by katerkat
Steve, I'm still waiting for that tax loophole that allows me to claim the cats as dependents. Find it for me yet?

Still looking -- hey, it's a big tax code!!