It's because:
a) They want to encourage people to have kids
b) They want kids to have a better standard of living instead of facing further hardship/poverty
This has nothing to do with fairness.
It's because:
a) They want to encourage people to have kids
b) They want kids to have a better standard of living instead of facing further hardship/poverty
This has nothing to do with fairness.
I think the point the OP is trying to make is that someone who chooses to have 5 kids should be treated no different from the single guy who has none when it comes to tax time.
we have a overabundance of idle bodies without jobs now, why create more.
Plus Humans are not environmentally friendly, so why burn the extra natural resources by creating more humans.
Personally I think if someone chooses to have even a single child that they should be expected to care for that child without any government aid.
Abortion should be the first choice right behind contraceptives for anyone who is not financially prepared for parenthood.
It's a credit so it is like getting paid. It is a form of a check if you have over paid hence Tax Return.
Example (made up numbers and %): you pay 10% of your income at $100,000 which is $10,000 so each month you paid $833 in tax (withdrawn from your paycheck).
With the child credit of $5,000. Now the tax you have to pay is only $5,000. So the Gov't mail you a check for $5,000.
Well...not really. It only reduces your taxes, so the check you get would be your tax money back (just like with a deduction). With some credits, like the EIC you get a check whether or not you paid any taxes. If it works like that for the Child Credit, then I admit I am wrong. I have only filed with a kid once and it reduced the amount of extra tax I paid by $1,000.
We are going so far from OP. I'm not an accountant but a credit is money back not a deduction. Like when you buy a GM Volt. You get $7,500 credit from fed and $2,500 from state so the $40,000 car is really a $30,000 car since the Gov will pay $10,000 of it for you.
You should talk to your accountant because the $1,000 is applied to your payable taxes as a credit (not as a deduction).
http://www.irs.gov/newsroom/article/...106182,00.html
"Additional Child Tax Credit - If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit."
Last edited by fearcazic; 2012-03-14 at 09:52 PM.
Agreed about the off topic part-
And I agree that the 1000 is applied to payable taxes- but most credits do not apply over the amount you have paid in taxes (and in that way they are similar to a deduction- ie merely reducing what you pay). But, like I said, some credits do pay past what you paid in taxes, like the EIC...
Sadly this post and Bridgetjones's post above about it being in the interests of the child have made the most sense. It is just so messed up. Everyone knows children cost money and you do not have children by accident. If I cannot afford expensive vacations, cars or whatever; I do not engage in these activities. If people can not afford children then they should not be engaging in those activities either (procreation)
Check out additional tax credits. You get the money back if you owe less in taxes.
http://en.wikipedia.org/wiki/Child_tax_credit
Bush gave us a tax payers credit (don't remember the name) a few years ago. It was for $600. You either get a check for it or it was taken off your total taxes paid. This is the same thing but for kids. Used to be at $400 but got extended to $1,000.
http://en.wikipedia.org/wiki/Tax_credit
"A tax credit is a sum deducted from the total amount a taxpayer owes to the state"
Last edited by fearcazic; 2012-03-14 at 10:08 PM.
They want to encourage working families to have more children.
Not seeing the issue here. Remember that immigrant families are the only things keeping western nations above replacement fertility rate. It would be a bad thing if the birth rate decreased even further, especially right now with an aging population. Unless you want it to be like China where 1 young person will have to pay for 4 elderly people? I thought not.
It should be no shock to you that those who have more disposable income tend to get taxed higher, whether directly or indirectly. Why? Because they can afford it. Just because you want to not have children doesn't mean you can opt out of society. By giving families tax breaks you're helping everyone. We need working families to have more children and we need these children to get good upbringings.
Commence all the ranting about how we need to decrease population by 90000% now. It always happens on topics like this for some odd reason.
That makes no sense whatsoever. You're implying that the tax breaks only exist to help people who didn't prepare.
When a couple actually does family planning (rather than just deciding not to ever have kids like you), they look at whether they can financially afford it.
These tax breaks help them to be able to afford it, encouraging them to consciously choose to try for a baby when previously they may not have. Read: The tax breaks are financial incentives to have children.
Again, this is a good thing. Deal with it.
Last edited by mmoce719e7ace2; 2012-03-14 at 10:04 PM.
That is cool- was not sure if the child credit was refundable or not. Most credits are not refundable (meaning you cannot get back more than you paid)
http://www.1040.com/federal-taxes/credits/
---------- Post added 2012-03-14 at 04:06 PM ----------
Also- why is having 5 kids necessarily poor family planning? Many people actively choose to have many children and budget accordingly.
Earned Income Credit. *tax code actually allows for a credit of approx $1500 per eligible dependent, which is why many large lower income families (people making less than 50k household total a year) will get back 2-5K in refunds a year.
Also, if you raise your dependents on your paycheck, dont go over 9, but its safe to claim double the number of kids you have, as long as you dont claim over 9. *Claiming 10 or more is a red flag that requires them to review why you are claiming so many. *
Originally Posted by Zarhym
Trust me, all that extra money goes right back into the kids. *I have a 2 year old son and he's expensive, so everything helps. *My wife and I chose to have him and it's very rewarding. *I don't think you should dog on people for having children or being irresponsible for it. *It's quite the contrary.
It's an idiotic policy. You should only get government assistance if you actually live in poverty.
The argument that "well kids cost money" is completely ridiculous. A lot of things cost money, you can't expect someone else to pay it for you.
Because the system is broken and run by people with agendas for either sides of the extreme, and no one gives a shit about those in the middle.
You're getting exactly what you deserve.
That's just ridiculous. *The tax credit just reduces your taxable income. *Trust me, I didn't receive a full $1500 for my son.
---------- Post added 2012-03-14 at 03:17 PM ----------
Someone else? *I pay taxes on everything I own and buy. *Such a silly argument.
They don't reward anything. They prevent horrible things from happening.
It's like aruging airbags reward car collisions.
Actually its entirely possible to get pregnant by accident. *Mainly every time 2 people have sex without the intent of making a baby, the pregnancy would be considered an accident. Then there is the matter of non-consensual*procreation, where either party did not want part in the activities at all.
Originally Posted by Zarhym
Far as I can see, there is two possibilities here.
A) You don't have enough money to make it through the typical month. and it stings to see someone else with less financial trouble. In that case, I think you should see if you can find a better-paying job, or else apply for government assistance. Good luck!
B) You just can't stand to see others pay less tax than you...in which case it's a greed and resentment issue. Rest assured that your co-worker probably spend a LOT more than he saves on taxes to keep his kids fed, clothed and healthy.