If you all are going to quote figures like that, at least review the publications that show you all that info:

IRS publications:
Pub 17 - your income tax return
Pub 15A - how to compute the tax withholdings

There are various publications discussing the Earned Income Tax Credit ... the one that credits you anywhere from 2 to over $5000 dollars because of your low income.

Did they really "pay" 4000 or was that the money "withheld" from their check. Big difference.

 

That was just whats withheld. I believe one made a total of 26,000 and had $2500 in returnable taxes, then after his kid was added that jumped to $6250. The other made $42,000 had $4000 withheld, and got a return of $12,000 with 3 kids. But in the end they were getting back 3x5 times the amount the gov withheld. They call it their lotto money each year.

 

If you all are going to quote figures like that, at least review the publications that show you all that info:

IRS publications:
Pub 17 - your income tax return
Pub 15A - how to compute the tax withholdings

There are various publications discussing the Earned Income Tax Credit ... the one that credits you anywhere from 2 to over $5000 dollars because of your low income.

Did they really "pay" 4000 or was that the money "withheld" from their check. Big difference.

All the guys I know and myself that got EIC got like $400 if you single, or $600 if your married. and that was it. Kids are the magic bean with taxes.

 

26000 with a couple of kids ... even at the standard deduction of 11600 + 3700 per exemption (4 if married with 2 kids) reduces that 26000 to zero taxible income. Then add the 1000 for each child on the child tax credit would get you 2000 plus whatever was withheld.

Adopting a sibling group of four would get you a adoption credit of more than $48,000.

 

I dunno that much about taxes, I'm single and usualyl either don't get a refund, or get some chicken scratch. Just just quoting what they earn and get. How they get it is beyond me, I refuse to help.
And its Single 26k with 1 kid = $6k, and married 42k with 3 kids = $12k.

Best I ever did was 08 when they gave out all those credits and other stuff. I made $48k and got back $2200.

 

@ Joe,you got that figured right,kids have to have every thing and the

government has all the numbers to add up,how does octo mom go go bankrupty

and make a profit...that in the news.

 

She probably took the normal path to bankruptcy ... spending more than you earn.

 

Yah octomom had every chance in the book but the fact is you can't raise 14 children as a single parent Especially when your paying for $235 haircuts. Case closed.

 

max,

The IRS likes the zero net game when it comes to taxes. That don't want you to owe anything and them not owe you anything. Rarely is that actually achieved.

People run the gamet of having no taxes taken out to those who have the max taken out. Those with zero taxes taken out typically get a penalty along with the priveledge of paying a large tax bill at the end of the year. Others take the gamble of having little taken out assuming the "credits" will cover whatever taxes they owe and get a return to boot.