Thread: What a douche bag.

In recent years, credits for low- and middle-income families have grown so much that a family of four making as much as $50,000 will owe no federal income tax for 2009, as long as there are two children younger than 17, according to a separate analysis by the consulting firm Deloitte Tax.

Nearly half of US households escape fed income tax - Yahoo! Finance

Mostly because the government has made alot of changes for young children in the last few years. Called the Child Tax Credit and Earned Income Credit. Child tax credit gives a family $1000 per child under 17, unless they are attending a collage recognized by the goverment then you can claim that credit until the child is 24. So if your taxes are $500 then the government pays you $500. You also get the standard deduction of $3500 per dependent for a family.

If your income is low (under 43,000 for 3 children) then you are qualified for the EIC (Earned income credit), this credit is given based on an negative exponential curve effected by number of children to income earned. It can give out upto $5,600 to a low income family with three children.

Tax Calculator - Earned Income Credit (EIC) and Child Tax Credit Table - H&R Block

So a family earning $60,000 with 1 child will have to pay some taxes, a quick and dirty calculation has you owing 6,330 a little over 10% after your standard deductions for married filing jointly + 1 dependent under the age of 17. I assume your work takes out probably.... 15% with your income so you would have gotten back 1,700 from the government did the government PAY you? NO. You still payed the government just less then you thought you would. Without the reductions for a child you would have owed additional money, a few hundred tops.

There are people who probably pay almost no taxes during the year (Schedule C people definitely) and get back a huge amount do to claiming 3 children with low income. But I doubt 47-49% of the people in America work for themselves or earn so little that there isnt an automatic deduction from them for federal taxes.

Oh forgot to mention, if you want the highest possible amount back for EIC, you need to earn 17,400 or so during the year. If you have 3 kids when you earn 17,400 the government will give you 5500 dollars. Nice aint it? Theyr just ROLLING in money.

Originally Posted by Bunni

i wouldnt be surprised to see riots not too far into America's future

no really, things are getting sad and corrupt. Protesting only goes so far... if anywhere...

Sigh...

Had close to that in new york over the weekend. Clocks ticking will government figure it out before it goes off?