Today I love the IRS

[kydisneyfans]

Let's take the miltary families out of the mix here off the bat:

1) They are not paid enough
2) Having George Bush as your boss is the most dangerous job in America.

How is a tax system fair that subsidizes someone 3-4K per year for NOT making enough money--but if a person is laid off from a decent paying job, they are taxed at the going rate?

The EIC is intended for families-just like Social Security--it should be some type of future savings for the children--if it should even exist at all.

Both sides of my family have siblings who constantly receive the credit-and they cannot figure out why we owe the government every year. It's called work. My solution is to take every tax credit possible, from maxing 401K to the healthcare accounts, to maxing out IRAs, to taking every deduction ever thought of, to ensure as much money stays in my hands as possible.

I am in the camp of if you qualify for the EIC--you would be stupid not to take it--but it should not be there to begin with.

 

[mudnuri]

Another situation is the OP, where she is basically reporting only half of the income in the home, and qualifying for the EITC that way. That's another situation, one in which I can't see myself in, but in which I probably wouldn't take it.

WHERE am I only reporting half my income? Who said that? I report 100% of my income...

Brandy

 

[froglady]

I think some of the posters are venting their frustration of the government's ongoing program (starting in the Depression) of disassociating "charity" from the donors/receipients. Because the money is collected and distributed by the government, the receipient develops an entitlement attitude, and becomes very defensive when reminded that this money was taken (by force) from someone else. When that person, who lost the ability to spend some of his/her money as he/she might want sees someone else spending money from the tax "pot" on something "frivolous" he/she gets annoyed.

We don't know why a particular item was chosen. Maybe the OP needs a new TV because that's the only entertainment her family can afford. And perhaps the couch is falling apart; she never indicated that she was just redecorating. I believe that she truly needs the money, and don't begrudge her, or anyone else in need, receiving it.

I really don't object to helping those in need, although I would prefer to make the decision myself, not be forced by my government. And I do understand that not enough people would or could help others, which is why the government felt the need to step in originally. I just wish that people wouldn't get so defensive when they're reminded that many of these programs ARE charity, and that the money they receive represents hours, days, and weeks of someone else's life.

I also am angered that our brave servicemen are payed so little that they sometimes qualify for this aid! That is an outrageous situation for them (and their families) to be in when they're putting their lives on the line for us.

 

[summerrluvv]

Oh good grief, give the "you owe me a thanks because my money gives you the EIC" a rest. Do you think that people that qualify for the EIC don't want their income to be higher than $35,000 a year? Let's see, If someone could make $50k a year and NOT qualify for the EIC the choice would be obvious. People that receive the EIC ARE working hours, days and weeks, and still don't make as much as those who complain about owing taxes, so all the demands for gratitude are a little off base IMO. I would rather my tax dollars going to support families and the economy than support a politician's $10,000 shower curtain or a national parks $10million dollar restroom

Also, someone that posted about tax preparers and turbotax calculating the EIC so most people that would qualify would take it. Well, I saw on the news in NYC there are 200,000 that could take the credit but don't because they aren't aware of it. These people probably do their taxes themselves. NYC has a huge campaign going to make people aware of the credit they are elgible for.

http://www.nyc.gov/html/dca/html/pr2006/pr_011906.shtml

 

[BuckNaked]

WHERE am I only reporting half my income? Who said that? I report 100% of my income...

Brandy

That's why I said income in the home - is your boyfriend not contributing anything to the household?

I really don't object to helping those in need, although I would prefer to make the decision myself, not be forced by my government.

Exactly. There are any number of people that if they contacted me right now and said they needed money, I'd have the cash to them as ASAP.

I also am angered that our brave servicemen are payed so little that they sometimes qualify for this aid! That is an outrageous situation for them (and their families) to be in when they're putting their lives on the line for us.

Base pay, especially in the lower enlisted ranks, isn't the greatest in the world. But as has been pointed out, there is much more involved than simply base pay. It's easy to cry about "Oh, my DH only gets paid $30,000/year", while leaving out the free housing, free medical, commissary, exchange, etc. Living on $30,000 with no housing expense is much different than living on $30,000 with a free home and no utilities.

Also, much of the EITC that is being given to military families of those in a combat zone is being based on taxable income, not actual income, which is higher.

And finally, unless things have changed in the last 19 years, everyone knows what the pay is when they come in.

 

[poohandwendy]

You want abolish the benefit of tax free pay while in a combat zone yet you want better benefits for the Armed Forces.... what better benefits do you suggest?

I want them to have better healthcare, better retirement benfits. I would like them to have better pay, none should ever qualify for the EIC.

i would rather see them paid more ALL of the time so that they do not have to worry about how much they make when they are not in combat.

 

[poohandwendy]

People that receive the EIC ARE working hours, days and weeks, and still don't make as much as those who complain about owing taxes, so all the demands for gratitude are a little off base IMO.

Why should anyone in this country be penalized for making better career choices? Taxes should not be based on your life situation, they should be based on equality. It is discriminatory to tax at a different rate based on level of income, IMO. It is wrong for our tax system to be based on the govts assumptions of social order. Btw, I am not asking for gratitude, nor would I want it. I just disagree with the current tax system.

 

[cepmom]

.

9th...no boyfriend living here helping me cheat the system.



Brandy

BuckNaked~

she says right here that there is no boyfriend living in her home.....how do you figure that he contributes to the household if he doesn't live there??

Some people are just unbelievable...many of you are so quick to judge others, when you clearly haven't read the details the OP has given (even though she was under no obligation to explain anything to anyone). The government has the EIC in place for whatever reasons...why shouldn't a person that qualifies for it take it?

I have received EIC in the past...when I was single mother, working full time, living with my mother because I could not afford my own apartment, going to school at night and receiving no benefits from either the state or federal government. I suppose I was cheating the system too. Whatever.

 

[bengalbelle]

I would rather my tax dollars going to support families and the economy than support a politician's $10,000 shower curtain or a national parks $10million dollar restroom

But in the OP's case the money is not supporting her family. She's not paying bills with it or putting it away for her children's future. She's:

buying a $1700.00 LCD TV - luxury

I'd buy the flat panel TV I want for the back of my closet door in my bedroom- call that 1500... probably another 200 for the bracket and cable etc etc

buying a new car stereo - luxury
buying a new sectional sofa - luxury (a cheaper one could be found)
a night at the Love Shack with her BF $179.00 - $209.00/night plus "extras"
a night at the Jungle Room with her BF $279.00 - $339.00/night plus "extras"

I planned this for the last weekend in April, because I can use my income taxes for it, and it wont take away from any bill that needs to be paid etc.

http://www.disboards.com/showthread.php?p=11167260#post11167260
vanity plates - luxury
GPS systems - luxury
DSL - luxury
pool tables - luxury
2 vehicles - luxury
ski weekends - luxury

I don't see the difference between the OP and the politician with his $10,000 shower curtain or the multi-million dollar bathroom. BOTH are spending tax dollars on luxuries they cannot afford. I'd rather not support either.

Single mothers or (truly) low income families who desperately need this money to get by are a different story entirely. That is not the case here.

 

[froglady]

Oh good grief, give the "you owe me a thanks because my money gives you the EIC" a rest. Do you think that people that qualify for the EIC don't want their income to be higher than $35,000 a year? Let's see, If someone could make $50k a year and NOT qualify for the EIC the choice would be obvious. People that receive the EIC ARE working hours, days and weeks, and still don't make as much as those who complain about owing taxes, so all the demands for gratitude are a little off base IMO. I would rather my tax dollars going to support families and the economy than support a politician's $10,000 shower curtain or a national parks $10million dollar restroom :rolleyes

http://www.nyc.gov/html/dca/html/pr2006/pr_011906.shtml

But they're working those hours, days, and weeks for THEMSELVES and their families; no one is taking money they earned and giving it to someone else.

I'm NOT demanding gratitude, but would like people getting this credit to ocassionally remember that it didn't fall out of thin air. Someone else earned that money, and were denied the use of that money.

I also get annoyed when the government forgets that it's MY money first, and they're taking it away from me...not the other way around. I'm unhappy when they spend 10 million on a restroom in a state park (but not if I really, really have to go while visiting said park.) They're not "giving" me anything if they took more taxes than I owed, and decided to give some of MY money back to me, unlike the EIC, where not only are they not keeping any of the tax money, but are sometimes giving back even more than they took.

 

[azgal81]

I love how everyone here is so bent out of shape that that the OP gets this credit and can buy the luxury items she wants! If I were her I would be thinking you all were green with envy. I said this before but I just have to comment again becuase all these judgemental comments on this post are ridiculous. Enjoy the refund and buy whatever you want!

 

[froglady]

BuckNaked~

she says right here that there is no boyfriend living in her home.....how do you figure that he contributes to the household if he doesn't live there??

Some people are just unbelievable...many of you are so quick to judge others, when you clearly haven't read the details the OP has given (even though she was under no obligation to explain anything to anyone). The government has the EIC in place for whatever reasons...why shouldn't a person that qualifies for it take it?

I have received EIC in the past...when I was single mother, working full time, living with my mother because I could not afford my own apartment, going to school at night and receiving no benefits from either the state or federal government. I suppose I was cheating the system too. Whatever.

I already stated that I have NO problem with ANYONE who is poor enough to qualify taking the refund and using it in ANY way they choose. (Although some people do) I do have a problem with them flaunting that fact in the face of those who have contributed to their windfall, rather than keeping quiet about it, then getting defensive about it when it's pointed out that this is charity, welfare, a gift, whatever you want to call money taken from one group and given to another simply because one group earns more money than another, and someone other than the giver has decided that you need it more.

 

[MagicKingdom05]

Here is two senerios I came up with for people filing there taxes:

Person A: Made $25000 for 2005 paid $2000 federal and $700 state taxes on it, did the standard decuction and filled out the EIC worksheet and is eligible for the credit and takes it. Person A takes it and gets a larger return then they would have without it lets say $3000 instead of $1000

Person B: Made $50000, paid $8500 in Federal tax and $1400 in state taxes on it, but itemizes instead of taking the standard deduction. They take off the property taxes, interest from morgage, last years tax return prep. ect and thus reducing the amount that they made for 2005 to $34000. This in return reduces the amount of tax they should have paid to $4500, allowing them to get a $4000 tax return instead of $1500-$2000 they would have without it.

So in the senerio above, who is really taking advantage of the tax system:

Person A who makes $25000, but is eligible for the EIC and by using it got a larger return

or

Person B who made $50000 but because this person itemized, it reduced the amount of income that gets taxed, reduces the tax amount itself and thus get this person a larger tax return.

 

[froglady]

Here is two senerios I came up with for people filing there taxes:

Person A: Made $20000 for 2005 paid federal and state taxes on it, did the standard decuction and filled out the EIC worksheet and is eligible for the credit because of the low income. Person A takes it and gets a larger return then they would have without it. Because of the credit this person is getting back $3000.

Person B: Made $50000, paid $7500 in Federal tax and $1400 in state taxes on it, but itemizes instead of taking the standard deduction. They take off the property taxes, interest from morgage, last years tax return prep. ect and thus reducing the amount that they made for 2005 to $34000. This in return reduces the amount of tax they should have paid to $4500, allowing them to get a $3000 tax return instead of $1000.

So in the senerio above, who is really taking advantage of the tax system:

Person A who takes the standard deuction, but is eligible for the EIC and by using it got them a larger return

or

Person B who has a much higher income but because they itemized, it reduced there taxable amount and thus got them a larger return.

How much did person A pay into taxes? How much did they get back? Person B PAID 4500 in taxes, after their refund. They still had to give up $4500 of their money. How much money did person A have to give away?

 

[poohandwendy]

LOL, why can't we be taxed correctly in the first place and eliminate the tax return completely? That way, there is not room for abuse of the system, manipulating the numbers...from anyone. And that way, everyone pays their fair share.

 

[froglady]

LOL, why can't we be taxed correctly in the first place and eliminate the tax return completely? That way, there is not room for abuse of the system, manipulating the numbers...from anyone. And that way, everyone pays their fair share.

Because life isn't fair, but the majority of people refuse to accept that fact. If everyone paid the same percentage in taxes, you would still have people complaing that "10% of my income takes away from the basics of life because I'm poor. 10% of your income just takes away some of your luxuries because you're rich. And THAT'S NOT FAIR!!!!"

 

[Toby'sFriend]

I love how everyone here is so bent out of shape that that the OP gets this credit and can buy the luxury items she wants! If I were her I would be thinking you all were green with envy. I said this before but I just have to comment again becuase all these judgemental comments on this post are ridiculous. Enjoy the refund and buy whatever you want!

very true. I am envious of LCD tvs (mine is 12 years old), new couches (haven't had one in over 7 years), stereos for cars etc.

Although I have to admit that after reading the list of recent purchases, I would prefer it if next year we could skip the vent over the State Taxpayers denying her request that they pay the heating bill.

I agree with the concept that total household income is not looked at. As some have mentioned, many people are living together unmarried, simply to avoid reporting combined income to various taxing and assistance programs. That probably is not the case here, but it is in thousands of other cases.

Also, the EIC does not take into account ANY child support that is received in the household. Since the main attempt of the program is to make sure that families are living at a minimum standard of living -- I think that it is more appropriate to look at all money coming in and count child support in the calculations.

 

[Longsx3]

I want them to have better healthcare, better retirement benfits. I would like them to have better pay, none should ever qualify for the EIC.

i would rather see them paid more ALL of the time so that they do not have to worry about how much they make when they are not in combat.

I can't believe that I am making this arguement but compared to civillan insurance our healthcare is very good, no copays for appt's, no copays for hospital visits and prescription copays only if we choose to go off base. Sure there could be some improvements as far as providers but hey there are bad civillan Dr's too.

One improvement for retirees would be to do away with the Tricare Prime fees, otherwise I think the military retiree benefits are pretty good. How many companies will give you 40-50% of your base pay after 20yrs?


Better Pay....how much do you think a kid straight out of high school be paid? I think that if you look at the pay system on a whole it is pretty fair. I do agree that there are some fields where the base pay does not equate to what civillan counter parts make but that is the sacrifice we make. It is not reasonable to think that a person working for the gov't any capacity would make the equivalent to those in the civillan sector. But there is pride in service, which for my Dh makes up for the difference in pay.

Like I said earlier I can't believe that I am making this arguement...I just am tired of hearing the about "poor military people"...we are not poor...would I love to see the Military give a pay increase across the board...sure ...but more money is always welcome but we will still live a good life without it.

Finally we do not worry or bank on the combat tax exclusion, it is simply a perk we recieve when DH is gone...it gives him money for new toys to take with him or for an additional vacation upon his return.

 

[MagicKingdom05]

With my senerios above I was just trying to show that a person who makes $50000 can reduce the amount he gets taxed on by taking off 401k and itemizing. By doing so, that 50000 becomes $31000 very quickly and thus a large return is had.

There is a big difference between someon who actually makes $31000 and pays taxes on that and someone who makes $50000, but only pays taxes on $31000 because of deductions.

 

[Free4Life11]

LOL, why can't we be taxed correctly in the first place and eliminate the tax return completely? That way, there is not room for abuse of the system, manipulating the numbers...from anyone. And that way, everyone pays their fair share.

There is no "correct" way to tax. There are many ways for the government to raise the money to fund its budget.

Also going to a flat tax....well there go all the people employed by the IRS and all paid tax preparers. Sure I'd love it if taxes were easier, but I'm not in favor of eliminating all those jobs.