Tax return is nearly $3000 LESS because I worked part-time last year!

[wvjules]

This is true. We got EIC when dh was out of work for half the year due to injuries from a car accident that was not his fault. It was a Godsend at the time. Even though our refund is smaller this year, I am SO grateful to NOT qualify because that means we're doing better than we were.

EXACTLY!

BTW, why should renters be entitled to take a deduction? It is not their investment. I rent. It never occured to me that I should be entitled to some sort of deduction. The risk is the homeowner's not mine.

 

[HHSTigerFan]

Regarding my thoughts on a flat tax... let's say I'm in the 20% tax bracket based solely on my income. BUT, because of deductions, credits, etc, I only pay 10%. So why not just let me pay the 10% and be done with it? Why should I pay less in taxes simply because I have a child or a house?

I have seen studies that say a flat tax would need to be around 14% to equal whats currently paid thru the current system... Some people don't like it because its not "fair" to the low income, they prefer the current system where they get paid to love here..

Maybe they could give people EIC Cards, walk into Walmart and buy your groceries, bill before flat tax is $100, they would have to pay $94, but thats ok because the next guy in line would have to pay $114..

 

[tlbwriter]

She said her refund was $3K less, the average refund is around $3K, thus the $6K I tossed out there..

So... you made that up? And then used your made-up number to challenge her statement?

 

[Muushka]

OP, I didn't read all of the responses, but just wanted to say "Thank you" from the taxpayers of the United States.

 

[MomRN]

This is the first year I haven't received EIC since my son was born. I wasn't sure to be happy or sad about that.

The thing I don't get, and this is coming from someone who earned it for 3 years... how someone gets by with buying expensive, luxury, items with it. When I got it (and I have to admit, when I got it I thought it was odd to get back more than I put in, but diapers needed to be bought) I paid bills months in advance, put away money for birthday and Christmas gifts, stockpiled necessities (such as diapers). My "luxury" purchase was a vacuum.

Last week at Wal-mart I saw 3 people buying 50" plasma tv's. I suppose I'm making a judgement call here... but I bet all 3 of those people had just received their tax check.

I still don't have a 50" plasma.

So, while I really did need that extra income, others obviously do not. I don't have an easy answer or solution though, so I try to just stay out of the debate. I am more fortunate now... have a little bit of savings, food in the fridge, still counting quarters but not pennies, nickels, and dimes... I'll take this option over the other.

 

[disneychrista]

BTW, why should renters be entitled to take a deduction? .

California does have a renters CREDIT and I believe at one point it was a refundable credit. In fact my understanding was you didn't even have to have income to claim it.

 

[wvjules]

California does have a renters CREDIT and I believe at one point it was a refundable credit. In fact my understanding was you didn't even have to have income to claim it.

Really? So owners and renters get a deduction and/or credit from the same piece of property? Odd.

 

[tinker&belle]

Indiana has a renter's deduction.

 

[HHSTigerFan]

So... you made that up? And then used your made-up number to challenge her statement?

Whoever I responded to was using made up numbers when they said the person was a taxpayer...

 

[Anjelica]

I don't understand folks who rent and begrudge the fact that they don't receive a tax credit unlike the property owner. As others have mentioned you still have the option of the standard deduction. Additionally, the property owner generally has to pay property taxes and as we know can be quite high in some areas.

If you get money back from the government, above and beyond what you paid into the system, it is welfare - plain and simple. EIC is a form of wealth redistribution - folks talk about how it is to account for all the other non Earned income taxes they pay (i.e. sales tax, SS, etc.) but I certainly don't get any of those taxes back because I don't qualify.

 

[tlbwriter]

The thing I don't get, and this is coming from someone who earned it for 3 years... how someone gets by with buying expensive, luxury, items with it. When I got it (and I have to admit, when I got it I thought it was odd to get back more than I put in, but diapers needed to be bought) I paid bills months in advance, put away money for birthday and Christmas gifts, stockpiled necessities (such as diapers). My "luxury" purchase was a vacuum.

Last week at Wal-mart I saw 3 people buying 50" plasma tv's. I suppose I'm making a judgement call here... but I bet all 3 of those people had just received their tax check.

I don't know why you're jumping to that conclusion. Yes, it's possible they just received a tax refund. But why assume they were receiving EIC? Maybe they got a refund without it. Maybe they just wanted a big TV for the Super Bowl. TVs often go on sale at this time of year. I don't see any reason to presume you know what's going on in those shoppers' wallets.

 

[Karlzmom]

I have never gotten EIC. Single parent here and I could never understand that one. Some friends of mine received the credit and they never worked as much as I did.

I think it's mis-named - the earned part is confusing.

A family member had the same thing happen that the OP did. She got a part time job to help with the kids school expenses and household extras and the family got banged on their income tax return. They took a bigger hit dollarwise than she made.

I still don't get it though, seems like it works the opposite of how it should.

I should investigate it more for a better understanding though I suppose...

If they called it "unearned money being given to you" there might be less of an entitled attitude for the money on the part of the recipients, and the average taxpayer would complain loudly. By making it sound like an "entitlement" the recipients will fight tooth and nail for what is "theirs" in the form of political loyalty to those working to keep the tap turned on and a fair number of people won't question that the payments are being made....

 

[Ava]

This is the first year I haven't received EIC since my son was born. I wasn't sure to be happy or sad about that.

The thing I don't get, and this is coming from someone who earned it for 3 years... how someone gets by with buying expensive, luxury, items with it. When I got it (and I have to admit, when I got it I thought it was odd to get back more than I put in, but diapers needed to be bought) I paid bills months in advance, put away money for birthday and Christmas gifts, stockpiled necessities (such as diapers). My "luxury" purchase was a vacuum.

Last week at Wal-mart I saw 3 people buying 50" plasma tv's. I suppose I'm making a judgement call here... but I bet all 3 of those people had just received their tax check.

I still don't have a 50" plasma.

So, while I really did need that extra income, others obviously do not. I don't have an easy answer or solution though, so I try to just stay out of the debate. I am more fortunate now... have a little bit of savings, food in the fridge, still counting quarters but not pennies, nickels, and dimes... I'll take this option over the other.

I understand where you're coming from, but it all comes down to choices. You chose to spend your EIC on necessities, which is the smart choice, IMO. Others might really need the extra money for necessities, but they choose to buy a TV instead.

I try not to worry about what other people do with their money and just try to make the best choices I can with my money. We don't have a 50" plasma TV either, but we have money in the bank which I think is a lot more valuable than any TV.

 

[DawnM]

Because the system is set up to help those who make less in particular. With no deductions, we would pay more than 10%. We are in a higher tax bracket than you are, but we don't even pay 10% after all deductions and credits. Or, at least we haven't in the past 4 years.

Plus, I really like our income and a flat tax would put DH out of work!

Dawn


Taxable Income Tax (married filing jointly)
$0 – $17,000 10% of taxable income
$17,000 – $69,000 $1,700 plus 15% of excess over $17,000
$69,000 – $139,350 $9,500 plus 25% of excess over $69,000
$139,350 – $212,300 $27,087.50 plus 28% of excess over $139,350
$212,300 – $379,150 $47,513.50 plus 33% of excess over $212,300
$379,150+ $102,574 plus 35% of excess over $379,150

Regarding my thoughts on a flat tax... let's say I'm in the 20% tax bracket based solely on my income. BUT, because of deductions, credits, etc, I only pay 10%. So why not just let me pay the 10% and be done with it? Why should I pay less in taxes simply because I have a child or a house?

 

[Karlzmom]

Regarding my thoughts on a flat tax... let's say I'm in the 20% tax bracket based solely on my income. BUT, because of deductions, credits, etc, I only pay 10%. So why not just let me pay the 10% and be done with it? Why should I pay less in taxes simply because I have a child or a house?

Are you suggesting the government shouldn't use "price signals" to influence you to make one set of choices over another..... Careful! That kind of talk will label you a radical...

 

[sam_gordon]

Because the system is set up to help those who make less in particular. With no deductions, we would pay more than 10%. We are in a higher tax bracket than you are, but we don't even pay 10% after all deductions and credits. Or, at least we haven't in the past 4 years.

I think you could still help those who make less. The following is based on my gut, and has no basis in facts...

Yearly Income Tax
$0-$20K 0%
$20K-$50K 3%
$50K-$75K 5%
$75K-$100K 10%
$100K-$150K 15%
$150K+ 20%

Again, I'm just guessing on the numbers. If you wanted, you could add say $5K-$10K for each dependent.

Plus, I really like our income and a flat tax would put DH out of work!

Sorry.

 

[Anjelica]

I think you could still help those who make less. The following is based on my gut, and has no basis in facts...

Yearly Income Tax
$0-$20K 0%
$20K-$50K 3%
$50K-$75K 5%
$75K-$100K 10%
$100K-$150K 15%
$150K+ 20%

Again, I'm just guessing on the numbers. If you wanted, you could add say $5K-$10K for each dependent.


Sorry.

With your example if I was making 99K and if I were to go up to 100K I would take a much greater hit in the taxes I would have to pay than a 1K raise/increase in income would give me. It would be more cost effective for me to stay at 99K than 100K.

 

[sam_gordon]

With your example if I was making 99K and if I were to go up to 100K I would take a much greater hit in the taxes I would have to pay than a 1K raise/increase in income would give me. It would be more cost effective for me to stay at 99K than 100K.

Yes, you are correct. But again, I made up all these numbers. You can graduate them more (maybe add 1% for every $10K? increase?).

 

[SaraJayne]

If they had a $6000 refund and eligible for EIC, you sure about that?

She didn't say they got a $6,000 refund. Stop twisting the numbers to try and prove your agenda.

 

[SaraJayne]

Its a small part of a big problem, too many people paying NO income tax and expecting corporate America and the productive members of society paying their way..

And yet again with the "productive members of society" BS.

If her DH works, he's a productive member of society.

If she stays home and cares for their children and home, she's a productive member of society.