Today I love the IRS

[N.Bailey]

A glorified Welfare check???? Are you KIDDING me??

I would much rather make enough money all year long to support my children better actually...

What about people in the military? You know, those guys that are protecting our country day in and day out; the ones that never see their families because they work 16 hour days? Do they deserve EIC or should I just go to the welfare office right now?

My DH has been in the Army for 11 years and we STILL get EIC because his annual salary is barely over $31,000 and no, that isn't a typo.

So, how would you guys who don't like EIC like "YOUR" money back or should I just tell DH he can repay you buy continuing to serve his country?

IMO, your husband's salary should be raised as well as everyone who is in the military. I don't think EIC should be used as a way to subsidize your income. Your income should be above the limit.

I will say though that while you get a low salary, your housing is paid and if you don't live on base, you're given extra money for that as well as food. My husband has been out of the military for some time now, but he does not believe that his BAQ or his extra for food was taxed when he lived off base, but he's not positive about that.

I'm sure you'll post back with the changes that have been made since my husband's days in the military though.

 

[Christine]

I will say though that while you get a low salary, your housing is paid and if you don't live on base, you're given extra money for that as well as food. My husband has been out of the military for some time now, but he does not believe that his BAQ or his extra for food was taxed when he lived off base, but he's not positive about that.

I'm sure you'll post back with the changes that have been made since my husband's days in the military though.

I have to chime in on this one here--probably get flamed. My DH was active duty for 8 years (Air Force, E-6). While, on paper, our salary seemed low, we probably we much more comfortable then most of our "civilian" years. That housing allowance is wonderful.

I live in a neighborhood now of $500,000 homes (they are not grand, just the DC area is expensive). Many of our homes are either rented or owned by military families--and most of them the spouse does not work. Their housing allowance allows them to rent in a very nice area.

Not saying that the military is rich or living a "lush" life by any means, but they do get a lot of breaks that aren't recognized by the tax system and contributes to receiving benefits.

 

[lynetteSC]

wow at all the judgements here! Pooor OP ... enjoy spending your $$$$

 

[sydally9367]

I will say though that while you get a low salary, your housing is paid and if you don't live on base, you're given extra money for that as well as food. My husband has been out of the military for some time now, but he does not believe that his BAQ or his extra for food was taxed when he lived off base, but he's not positive about that.

You are correct that our housing on base is paid for and I am sure you recall what military housing is like You are also correct that we get paid "extra" for living off base, however, the BAH (no longer called BAQ) for the area we currently live in is $1100.. our rent is $1400. Now I am sure you are saying "Go get a cheaper place", but I have 2 children and in this area, cheaper than $1400 quite frankly is the ghetto.
I do understand your point that EIC shouldn't subsidize etc, my point was that some people DO "deserve" (for lack of a better word) the EIC.

 

[N.Bailey]

You are correct that our housing on base is paid for and I am sure you recall what military housing is like You are also correct that we get paid "extra" for living off base, however, the BAH (no longer called BAQ) for the area we currently live in is $1100.. our rent is $1400. Now I am sure you are saying "Go get a cheaper place", but I have 2 children and in this area, cheaper than $1400 quite frankly is the ghetto.
I do understand your point that EIC shouldn't subsidize etc, my point was that some people DO "deserve" (for lack of a better word) the EIC.

1st off, my point about the EIC credit is our military should be making enough money that they do not qualify for it. I will never bash anyone for taking advantage of something that the government gives them. However, I don't feel that anyone should get back more then they pay in. Of course, the government doesn't agree with me. What's new about that?

Okay, you get $1100 per month toward your housing, and that means, you make an additional $13,200 a year that you pay no tax on. Civilians have to pay tax on their rent/mortgage monies. What about food allowance? Is that included in the $1100? It's really a rhetorical question. I don't expect you to oblige me by giving us a complete run down of your expenses because frankly, it's none of my business what you make.

I have the utmost respect for our military, so I begrudge you nothing. I'm just saying the picture isn't always as black and white as it's made out to be.

 

[lesroi]

You are correct that our housing on base is paid for and I am sure you recall what military housing is like You are also correct that we get paid "extra" for living off base, however, the BAH (no longer called BAQ) for the area we currently live in is $1100.. our rent is $1400. Now I am sure you are saying "Go get a cheaper place", but I have 2 children and in this area, cheaper than $1400 quite frankly is the ghetto.
I do understand your point that EIC shouldn't subsidize etc, my point was that some people DO "deserve" (for lack of a better word) the EIC.

I am not sure where you are living in Reno, but I just moved from northern Nevada and can tell you for a fact that less than $1400 IS NOT the ghetto. You can rent a very very nice HOUSE in Reno for less than $1400 a month. In fact you can rent a house in the "Double Diamond" area for less than $1400 a month. You should have looked harder, you could be saving some money!

Tracy

 

[mannasn]

We only get refunds because I'm a poor student, my DH is a blue collar guy, and we have two kids who we are in daycare.

Can't wait for our refund this year - still waiting on one W-2. Using the $$ to pay off our Disney/vacation trip!

 

[dcgrumpy]

Has she complained she can't pay for her necessities? She is getting that money back regardless. The government says she is entitled to it. She didn't ask for it. If her bills are paid, why can't she spend it on whatever she wants?

IIRC a few months ago she was complaining that she got turned down when she applied for Heat Assistance

 

[katerkat]

I will say though that while you get a low salary, your housing is paid and if you don't live on base, you're given extra money for that as well as food. My husband has been out of the military for some time now, but he does not believe that his BAQ or his extra for food was taxed when he lived off base, but he's not positive about that.

I'm sure you'll post back with the changes that have been made since my husband's days in the military though.

Don't forget the free health insurance, very low cost dental, the ability to shop in the commissary, the fact that several states don't take income tax from military (PA didn't!), BAH and BAS are NOT taxed, low cost life insurance, etc, etc. And, though it sucks to have them away (and I know, we're in a deployment right now), we don't get federal income tax taken out while he's in a combat zone, and we have hazard pay and family separation. (No idea if those are taxed.) Plus so many companies give military discounts, and there's the VA loan...

Trust me, I know military pay sucks on paper, but I'm pretty familar with the benefits.

 

[Alicnwondrln]

i think people need to remember that we dont know everyones personal lives
the rule or law or tax code is written poorly in this case
i dont believe you should ever get back more than you put in
but if people do and they arent smart enough ( and im not saying that the OP is) to save and use it to help them live then they are jsut stupid
i know my sister is like this for years she always had a windfall at tax time cuz she was a single mom, living at my parents and going to beauty school
i was sooo MAD !! every year it was wasted and she was always taking money from my parents and from the state
wic, food stamps, free daycare im sorry but i think that is wrong

 

[BuckNaked]

Whoever said that money is a glorified welfare check...oh please. I bust my freakin' butt all year long and I receive the EIC. So you equate me with being on welfare???? I WORK FULL TIME and I do NOT receive any other assistance!!!! I pay my rent on my own, I pay my heat on my own, my groceries and every other bill I have. How can you even compare?

That was me, and I stand by that assessment. If you are paying zero in income tax, and the government is sending you money back, as far as I'm concerned, it's welfare. Your wages are what you paid for the work you did - what did you do to earn the refundable credit in EITC?

Now how would you all like your $1303 back? Shall I mail you a check?

I don't want it back - as BobSlydell said, if it's there, I understand why people take it. I just don't think it should be there in the first place.

I do understand your point that EIC shouldn't subsidize etc, my point was that some people DO "deserve" (for lack of a better word) the EIC.

I don't see how you can say anyone "deserves" to get back more than they paid in.

I have to chime in on this one here--probably get flamed. My DH was active duty for 8 years (Air Force, E-6). While, on paper, our salary seemed low, we probably we much more comfortable then most of our "civilian" years. That housing allowance is wonderful.

I live in a neighborhood now of $500,000 homes (they are not grand, just the DC area is expensive). Many of our homes are either rented or owned by military families--and most of them the spouse does not work. Their housing allowance allows them to rent in a very nice area.

Not saying that the military is rich or living a "lush" life by any means, but they do get a lot of breaks that aren't recognized by the tax system and contributes to receiving benefits.

Well said! I'll be the first to agree that lower ranking military members aren't paid nearly what they're worth, but things aren't nearly as bad as some people would have us believe when it comes to military compensation. The freebies, discounts, tax benefits, etc. add up to thousands of dollars per year that we don't have pay, and as such, are as good as wages to me.

What about food allowance? Is that included in the $1100?

No, BAS (basic allowance for subsistence) is around $270/month for enlisted members, and is completely separate from BAH (basic allowance for housing).

 

[MagicKingdom05]

I'm getting back around $3800 from fed and not sure about state. I have to wait until 1/31 to file. I used my last pay stub from 2005 and H&R blocks online system to estimate my fed refund. I'm using my refund for a nice 2 week vacation in Dec 05 over New Years.

 

[bettyann29]

I got my w2 today and filed this afternoon... DisneyWorld here we come!! 9 days in May/June..

 

[disneymom3]

I just envy you all who have one W-2 to count on. DH has three this year due to getting a new job but being placed by a consulting firm first before being hired permanent. I also have three with two of them being 1099 as I was a realtor and I work as an early childhood consultant. I ran rough numbers and it looks like there will be some money coming back.

I have never understood how a friend of mine always gets back more than she paid or technically owes. This thread clarified it for me. Must be the EIC.

Brandy--bet ya didn't think this would turn into 7 pages, huh?

 

[summerrluvv]

Most people that qualify for the EIC aren't always getting back more than they paid in. Yes, they are getting more than they paid in for federal taxes, but the purpose of the EIC is to offset SS and Medicaid taxes that have been paid into as well and not listed on your tax return. When I worked part time I received a huge refund due to the EIC. Now that I work full time I think the EIC portion of my refund is about $500 and next year I probably won't qualify at all since I'll have worked full time the entire year. I have childcare to pay for though so my refund is still pretty large.

I saw a story about the EIC on the news and most people don't even know they qualify for it and therefore don't take it.

OP have fun spending it

Shame on you people that are handslapping her for taking something the goverment says she is entitled to. All of us pay taxes, property taxes (in one form or another), sales tax, vehicle tax, etc. The "you are using MY tax dollars" statement is getting a little tiring.

 

[Toby'sFriend]

All of us pay taxes, property taxes (in one form or another), sales tax, vehicle tax, etc. The "you are using MY tax dollars" statement is getting a little tiring.

sorry. I just can't agree when most of the people I know are paying over 30 to 40% of their income into various taxes at Federal, State, and local levels. OF course people should have an opinion of how their taxes are spent.

 

[summerrluvv]

sorry. I just can't agree when most of the people I know are paying over 30 to 40% of their income into various taxes at Federal, State, and local levels. OF course people should have an opinion of how their taxes are spent.

I think the EIC is chump change compared to most things that people's tax dollars are spent.

 

[cruisnfamily]

I saw a story about the EIC on the news and most people don't even know they qualify for it and therefore don't take it.

If you do one of those online things like turbo tax, don't they go thru a Q & A thing to determine if you qualify? Also, when you go to one of those "quick refund" places, I'm sure they also would know if you qualify. I'm thinking most people that qualify manage to get it.

by the way, si there an online tax calculator where you can just plug in your earnings and see what your total tax bill would be?

 

[perdidobay]

I also called the EIC a welfare payment... as long as that EIC money a person receives is more than they paid in total to the government... then it is indeed a welfare payment.. it did not fall out of the sky, it did not come from the IRS as a gift, it is a welfare payment that was funded by other taxpayer's taxes.
I don't begrudge the people who get it... I just want them to appreciate who really paid for that handout.

It seems to me, that if a person is getting by so barely that they are receiving that money, it is disgusting and wrong for them to blow it on wants, not needs.

I don't pay my taxes so poor people can watch a big screen... I like to think that money goes to help them eat and get medical care.

 

[N.Bailey]

I think the EIC is chump change compared to most things that people's tax dollars are spent.

It might be chump change to you, but I don't consider almost 180 billion chump change. It's more than is given for the Child Tax Credit $173 billion (which more people qualify for) and the $158 billion cost to taxpayers for charitable contributions.

# The earned income credit.
You qualify for the earned income tax credit, which is targeted at low-income taxpayers. Cost to the government: $179.7 billion.

http://moneycentral.msn.com/content/Taxes/Taxshelters/P75680.asp