Why Do I Feel Like I'm Getting Ripped Off?

[Lisa in Katy]

I lost half of my Child Tax Credit this year because my daughter turned 17 on October 22. I just assumed that I would get it as long as she was my dependent. Then, I lost the $300 from the economic stimulus package because she is 17. I thought she would get it because she made over $3000, but according to the paper we received in the mail today, she won't get it because she was claimed as a dependent on my taxes! I know it's free money, but if they had done it last year, I would have gotten it! Doesn't the government realize that kids cost more the older they get?

 

[CThrock]

My daughter is getting her $300.00 check we got a letter the other day. We claim her every year because she gos to college full time and works full time but lives at home. She does'nt claim herself on her 1040ez form. So I don't know if that makes a difference or not. We can claim her till she 24. Plus this year she actually getting some money back on her own filing.....Is your daughter still in High School? Does she work? Maybe thats some questions you can have for your tax person. Well good luck. Hope I've helped a little.

 

[Lisa in Katy]

Hannah got a letter too, but if you look at the next to last paragraph, it says, "In addition, individuals cannot receive a payment if they can be claimed as a dependent of another taxpayer...." When I completed her taxes using TurboTax, a note popped up saying she did not qualify, but I hoped that they didn't know what they were talking about until the letter arrived today. So, I double-checked the IRS website and it said the same thing.

If you go to this website, there is a calculator to tell you how much you'll get.

http://www.irs.gov/app/espc/

 

[Ross]

Hey you could get nothing. Anything we get is going toward fuel oil for heat, so how does that stimulate the economy? I get nothing, no earned income for 2007, Chris gets nothing for the same reason, Lyn will get $600. My last fuel oil fill came to $579 a week ago, so as you can see, this money isn't going to get spent in a economy stimulating way, itd going back into the oil profits.

 

[mntbiker]

I don't know how else to say it:

This government wealth redistribution sucks. I get nothing. I have a wife who is a stay at home mom and two kids and they tell me I make too much. So enjoy my money. I guess this is what I get for working full time and having my own full time business.

 

[terryj]

I don't understand this either. My granddaughter turns 18 this year and is still a senior in High School. Her parents also lost the Child Tax Credit for her because she turned 17 last June and they don't get the 300.00 tax stimulus money. Only my son works and they struggle with three children. Their Mom can't work because there are no school buses in the town they live and all three girls go to different schools,Elem.Middle and High school. Their Mom spends all day taking and picking them up from school and now she is paying over 3.00 a gallon for gas. My husband and I help out all we can. If not, the girls would not be able to do any activities because of the money and my son works 12 hours a day 6 days a week.

 

[Ross]

Has anyone come up with a cost on this so called stimulus package? I bet it's a spit in the hand compared to what we've spent on other countries.

http://money.cnn.com/2008/01/24/news/economy/cost_of_stimulus/index.htm?postversion=2008012409

 

[Curtsmum]

What a bummer, it can be a struggle when this happens. Here in the uk i lost all the tax credit i got for my son, when he turned 16 and he wasn't working or going to college,I found it hard loosing a big chunk of my income, wishing you the best of luck

 

[Dennis S]

Ross check this out

Ross check this out

Hey you could get nothing. Anything we get is going toward fuel oil for heat, so how does that stimulate the economy? I get nothing, no earned income for 2007, Chris gets nothing for the same reason, Lyn will get $600. My last fuel oil fill came to $579 a week ago, so as you can see, this money isn't going to get spent in a economy stimulating way, itd going back into the oil profits.

Ross: I obviously don't know your situation, but the fact that one spouse has no earned income is not a disqualifier if your spouse has earned income and you are filing jointly.

If you have already done your taxes, have them handy for reference, and you can tell your status in just a few m inutes from this IRS site.

http://www.irs.gov/app/espc/1040.do

Good Luck!

 

[OldManEmu]

Ross how long does the

last fuel oil fill came to $579 a week ago,

last you? You wouldn't want more than one of these each winter.

I can't comment of US tax rebates; however I did look at Lisa's link to the IRS.
The IRS web site has a very similar look and feel to the ATO site; they even use the same colours.
It looks like the US tax system like Australia's is a byzantine maze designed to catch out the unwary.

 

[Debbrn]

I agree with mtnbiker completely.

Just because I don't have the gift of children, I have to pay more taxes. Because I am single with no children I pay a fortune in taxes. I need to cut my hours a work, but I can't afford to. It sure would help if I didn't have to pay so much in taxes. How can some people get a $2000 tax "rebate" when they don't pay $2000 in taxes.

Debbie

 

[Dennis S]

Does anyone else see a vehement political discussion on the near horizon?

 

[mntbiker]

Not a vehement political discussion but perhaps a recognition that our representatives in government are playing pre-election games. That goes for both parties. If they truly wanted to stimulate the economy they would pass HR25. With all the millions spent in research on it you would think they would get in gear. Of course it would mean losing power over the people. I guess the politicians can't allow that.

 

[Lisa in Katy]

I remember in college we were asked which we supported, the current sliding scale income tax or a flat tax. I was one of the few in the class who said flat tax. When asked why, I replied, "The only people who truly pay their designated tax rate are the middle brackets. Those in the lower brackets manage to get back almost all they've paid in because of "Head of Household", "Earned Income Credit", etc. Those in the upper brackets pay taxes, but have more deductions, so often are paying a lower percentage than the middle brackets. The flat tax is fair because those who make less would pay less, those who make more would pay more, but the percentage would be the same, much like sales tax. We could do away with the IRS completely."

HR25 sounds even better. I would hope that the retailers would lower their prices accordingly since they wouldn't be paying payroll taxes anymore. What do you think the sales tax rate would need to be in order for this to work?

Debbie, I understand where you are coming from, but there is really not that much difference between married and single when you apply the income and the taxes per individual. For instance, if you are single and make $45,000, you pay $7,680 in taxes. If you are married and make $45,000 each, totaling $90,000, you pay $15,354, or $7,677 each. Regarding the break for children, believe me, my children cost a lot more than I get back in taxes! But I love my children and find them worth the cost!

I'm ready to go with the Pilgrims to the new world. Think about the taxes involved in a simple loaf of bread. The farmer who grew the wheat pays income tax as well as property tax on his farm. The factory that makes the bread pays income tax, property tax, and payroll taxes and the employees pay income taxes. The store that distributes and sells the bread pays income tax, property tax, and payroll taxes and their employees pay income taxes. I now take my money that I've already paid taxes on and buy the loaf of bread, for which I have to pay sales tax. Once I've processed the bread, I pay taxes to the city for the water that I use to wash away my waste! How many times does that dollar loaf of bread get taxed???

 

[OldManEmu]

You?re Not Alone

You?re Not Alone

Debbrn don’t feel bad this sort of thing seams to happen in all western countries. I have no children and I am punished by the tax system for it. This is not just a US phenomenon all western countries engage in this discrimination (affirmative action).
Lisa 7.7k in tax on 45k income and no national health system, where is the money going?

 

[hensylee]

Does anyone else see a vehement political discussion on the near horizon?

so far it's calm and we must keep it that way, but yes, it could be.

 

[Ross]

It's hard not too. As long as it's calm and such, no problem. We get into trouble when the flames start up.

 

[Lisa in Katy]

Flames? Certainly we all hate taxes?

Emu, we do have a national health system of sorts, but only the low-income (Medicaid, which is run at the state level, but federally mandated and funded in part), elderly (Medicare), and a few others (combination of Medicaid and Medicare) are eligible for it. In fact, more money comes out of my check to pay for Medicare than to pay for my health insurance. I only hope that it and I are around long enough to get a crack at it! In 2005, there were about 53 million people on Medicaid (a large number of which were children), and it cost the taxpayers $330 billion. In 2007, there were 43 million on Medicare and it cost the taxpayers $440 billion.

Don't get us started on national health care and where all the rest of the money goes. That will surely cause flames!

 

[OldManEmu]

No Flames

No Flames

Lisa I do not want to be the source of flames!!!

 

[KAJ]

Both political parties in the U.S. are guilty of wasteful spending, hence higher taxes . No, I am not an Independent, I do love my country greatly but am really, really ticked off at many of our gutless leaders in both parties. They are more concerned about getting elected or relected than trying to stop needless spending.

Karl