2 kids, 50k in income? April 15 is payday for you!

TGregg

TGregg

Nearly half of US households escape fed income tax

The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment.
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But income tax rates were lowered at every income level. The changes made it relatively easy for families of four making $50,000 to eliminate their income tax liability.

Here's how they did it, according to Deloitte Tax:

The family was entitled to a standard deduction of $11,400 and four personal exemptions of $3,650 apiece, leaving a taxable income of $24,000. The federal income tax on $24,000 is $2,769.

With two children younger than 17, the family qualified for two $1,000 child tax credits. Its Making Work Pay credit was $800 because the parents were married filing jointly.

The $2,800 in credits exceeds the $2,769 in taxes, so the family makes a $31 profit from the federal income tax. That ought to take the sting out of April 15.
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http://news.yahoo.com/s/ap/20100407/ap_on_bi_ge/us_no_taxes

STEPHEN OHLEMACHER better watch out. His bosses at AP are not going to be very happy with this story.
 
I don't have a problem with people who make less, paying less in taxes, but EVERYBODY that works should pay some tax. The only ones who should get a break are retired people and people who can't work due to physical disability. Now we have almost 50% that can vote for benefits they won't have to pay for. Our tax base is very narrow and deep.....a few paying the majority. All we need to do is look at California to see haw that will work out. What we should have is a very shallow and broad tax base...everyone pays some.
 
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