No one seeems to be considering this. I believe that people who are struggling will not be able to eek enouggh out of their budget to pay for heath insurance, therefor...no credit. Does anyone else see the flaw in this plan from the perspective of the uninsured?
How does a health insurance tax credit help if you can't afford to pay for insurance up front?
It doesn't. It's a bunch a bull. All McCain wants to do is deregulate the health care industry by removing state restrictions on health care insurance companies. This will be a disaster.
Obama's plan is much better in any light.
Reply:It's hard if you can't afford it, but at the end of the year, come tax time it will help you a great deal, use any refund for your upcoming insurance costs. I can't see how Obama's plan will help you at all if you are an adult trying to afford insurance.
Reply:Because it is meant to help. If health insurance is very important to you, than cutting other expenses as well as the tax credit will help you pay for it. For eg: cut out Cable TV, fancy cell phones. decrease your entertainment and eating out bills, etc.
Reply:lets just give everything to everyone that sounds good.
I don't like to work anyway!
No need to work under an Obama Plan!
USA the great welfare state 08!
And lets all get fat and take Absolutely no responsibility for ourselves!
Reply:I'm voting for him, but I don't care for that plan. Being that it seems pretty iffy, he will get no support for it, case closed. (dems still in control)
Reply:It's not a rebate.
D.C. pays $5000. How is that not helpful?
You can get insurance for that. I've done it.
Reply:Exactly its a poorly thought of plan, and it will only make things worse before better.
Reply:Not to mention "pre-existing condition" clause.
Reply:Very poor plan.
Monday, August 3, 2009
Can anyone get the HOPE TAX CREDIT while attending school in GEORGIA?
How can you get this credit, and does it really effect the amount you receive?
Can anyone get the HOPE TAX CREDIT while attending school in GEORGIA?
Yes, you can get the credit when attending school in GA as this affects your federal taxes and not your state taxes (probably). Basically here is how it works:
- In order to qualify, you have to be attending your first two years of college. If this is the case:
-Take all of your expenses from the tax year (this years expenses for next filing year); add them together.
-Take Form 8863 and fill out the first part. (If you take the Hope Credit you cannot take the Lifetime Learning Credit for the same person) It looks complex, but just read and follow the instructions and you will find out what you qualify for.
Basically, it will affect the amount that you receive UP TO the AMOUNT OWED. For example, if your tax owed (before withholdings) is $300.00 and the Hope Credit is worth $1000.00 to you and you withheld $500.00, then it will simply wipe out the $300.00 owed and get the full $500.00 back instead of only $200.00 without the credit.
In the case that the amount or your taxes is $1800.00 and you get the full $1500.00 credit and you withheld $500.00, then you will reduce the taxes from $1800.00 to $300.00 and then you will get back only $200.00. But this is much better than owing $1300.00 with out the credit!
I know it is confusing, but if you have anything to ask, please email me!
-Kevin
Reply:HOPE is not a tax credit. It is an actual payment toward your tuition.
You have to be a resident of Georgia with a 3.0 GPA.
I went to a Georgia high school, left with %26gt; 3.0, and received HOPE.
Basically, HOPE pays tuition at public universities, and a set amount for a private university.
If you are from out of state, but claim residency after one year, you may be able to get it. You'd want to check with a financial aid office at whatever Georgia college you're looking at..
In response to Steven - the original question is mixing up two separate concepts. There is a HOPE scholarship that is specific to Georgia.
Reply:intelbarn is incorrect. The Hope Credit is a tax credit. The link below is the IRS publication related to the Hope Credit. The state you are in is not a consideration.
http://www.irs.gov/publications/p970/ch0...
Can anyone get the HOPE TAX CREDIT while attending school in GEORGIA?
Yes, you can get the credit when attending school in GA as this affects your federal taxes and not your state taxes (probably). Basically here is how it works:
- In order to qualify, you have to be attending your first two years of college. If this is the case:
-Take all of your expenses from the tax year (this years expenses for next filing year); add them together.
-Take Form 8863 and fill out the first part. (If you take the Hope Credit you cannot take the Lifetime Learning Credit for the same person) It looks complex, but just read and follow the instructions and you will find out what you qualify for.
Basically, it will affect the amount that you receive UP TO the AMOUNT OWED. For example, if your tax owed (before withholdings) is $300.00 and the Hope Credit is worth $1000.00 to you and you withheld $500.00, then it will simply wipe out the $300.00 owed and get the full $500.00 back instead of only $200.00 without the credit.
In the case that the amount or your taxes is $1800.00 and you get the full $1500.00 credit and you withheld $500.00, then you will reduce the taxes from $1800.00 to $300.00 and then you will get back only $200.00. But this is much better than owing $1300.00 with out the credit!
I know it is confusing, but if you have anything to ask, please email me!
-Kevin
Reply:HOPE is not a tax credit. It is an actual payment toward your tuition.
You have to be a resident of Georgia with a 3.0 GPA.
I went to a Georgia high school, left with %26gt; 3.0, and received HOPE.
Basically, HOPE pays tuition at public universities, and a set amount for a private university.
If you are from out of state, but claim residency after one year, you may be able to get it. You'd want to check with a financial aid office at whatever Georgia college you're looking at..
In response to Steven - the original question is mixing up two separate concepts. There is a HOPE scholarship that is specific to Georgia.
Reply:intelbarn is incorrect. The Hope Credit is a tax credit. The link below is the IRS publication related to the Hope Credit. The state you are in is not a consideration.
http://www.irs.gov/publications/p970/ch0...
Can I work under 16 hours a week and still claim Child Tax Credit not Working Tax Credit?
I am a university student with two children. I'm on my summer break and wanted to look for work. I claim child tax credit and wanted to know if I could work under 16 hours without my claim being affected.
I don't want to change to working tax credit because it's too much messing around when I'm going back to uni soon.
Please help!
Can I work under 16 hours a week and still claim Child Tax Credit not Working Tax Credit?
Don't understand why you don't want to claim Working Tax during uni break. If you're already receiving Child Tax its only a phone call to tell them your working %26amp; then another when your not.
Is it because you're allso receiving Housing %26amp; Council Tax benefits or Income Support because if you are then anything you earn over £20 is going to affect Income Support which could then lead to reduction in amount of Housing %26amp; Council tax you receive.
If your not receiving any benefits except Children Tax, which by the way isn't a benefit its a credit, then doesn't matter how many hours you work would only start to taper off after about £15K %26amp; don't know any job thats pays that much over the summer period
Reply:Just give the Tax credit people a ring ... they will tell you what you can and can't do. (I'm on tax credits too)
Reply:yes it should be fine.
Reply:yes every parent workin or not, gets child tax credits.
nor any other benefits should be affected if ur on them because ur be workin 16 hours or less.. ,
Reply:I would suggest that you phoned them up,they are very helpful.
Reply:Hi you are still entitled to child tax credit, though if you work 16 hrs you will get working tax credit on top of the child tax.
Reply:you can get both but anything over £20 per week it will affect housing benefit, its really not worth it with the paperwork you would have to fill in.
Reply:I'm fairly sure you can.
When i started back to work i worked under 16 hours and still received help with child care fees, but that was 5yrs ago and who knows what changes they may have made since then.!
Reply:You may find something helpful on here: http://www.taxcredits.inlandrevenue.gov....
I don't want to change to working tax credit because it's too much messing around when I'm going back to uni soon.
Please help!
Can I work under 16 hours a week and still claim Child Tax Credit not Working Tax Credit?
Don't understand why you don't want to claim Working Tax during uni break. If you're already receiving Child Tax its only a phone call to tell them your working %26amp; then another when your not.
Is it because you're allso receiving Housing %26amp; Council Tax benefits or Income Support because if you are then anything you earn over £20 is going to affect Income Support which could then lead to reduction in amount of Housing %26amp; Council tax you receive.
If your not receiving any benefits except Children Tax, which by the way isn't a benefit its a credit, then doesn't matter how many hours you work would only start to taper off after about £15K %26amp; don't know any job thats pays that much over the summer period
Reply:Just give the Tax credit people a ring ... they will tell you what you can and can't do. (I'm on tax credits too)
Reply:yes it should be fine.
Reply:yes every parent workin or not, gets child tax credits.
nor any other benefits should be affected if ur on them because ur be workin 16 hours or less.. ,
Reply:I would suggest that you phoned them up,they are very helpful.
Reply:Hi you are still entitled to child tax credit, though if you work 16 hrs you will get working tax credit on top of the child tax.
Reply:you can get both but anything over £20 per week it will affect housing benefit, its really not worth it with the paperwork you would have to fill in.
Reply:I'm fairly sure you can.
When i started back to work i worked under 16 hours and still received help with child care fees, but that was 5yrs ago and who knows what changes they may have made since then.!
Reply:You may find something helpful on here: http://www.taxcredits.inlandrevenue.gov....
When Obama says he is going to a tax credit do you realize this is a different term for Handout?
He is not lowering the tax rate for middle class workers. He is expanding the welfare program to low income workers and non workers. He is increasing the tax rates on the top two tax brackets but is only promising to leave the middle class rate the same. Read his tax policies on his site. When he compares his tax rates to the 1990's he is comparing them to Clinton tax rates. His policies will not be lower than Bush.
When Obama says he is going to a tax credit do you realize this is a different term for Handout?
It is basically welfare. Bottom line, this is how it's going to be, currently, the top 5% of the populaton is paying for 45% of the taxes, while in contrary, the bottom 50% of the population is paying 10% of the taxes, which basically means the real middle class people are the remaining 45% of the population who is paying for the remaining of the 45% of the taxes. So if you have a job and go to work and pay taxes, you are in this 45%, so do the math, 50% of the population are currently leaching off you by relying on welfare and “refundable tax credits”… Obama’s plan is to increase those tax credit, so now 50% of the population will be paying even less than 10% of the total taxes. When you threaten to slap the hands of the 5% of the population who are currently feeding this nation, they are all strategically planning to move their income elsewhere already, trust me, it’s doable, my client is within that 5% and we could help him cut his taxes by more than half by moving it oversea… If all 5% of those people are doing the same planning, now, you’ll get 5% paying 20% of the taxes, 50% paying 5% of the taxes, where do you think the differences will come from to make up for it? Obama might promise the middle class will not see an “income” tax increase, but he is planning to increase social security (fica) tax instead, the difference is coming from somewhere, trust me, he cannot crap out gold, so under the democrat politic, rob the hard working people, the 45% of the people who go to work and pay taxes to help the lazy and the welfare who sit at home watching jerry springer and popping out kids… So ask yourself, if you are within the 45%, is it hard to get a job that you currently have? What does it take to be where you are? 50% of the population is currently think it’s too much and they rather sit home and leach off of welfare… I rest my case…
Reply:Yes. But here's the truly perverse part of the New Obama Welfare State:
Because Mr. Obama's tax credits are phased out as incomes rise, they impose a huge "marginal" tax rate increase on low-income workers. The marginal tax rate refers to the rate on the next dollar of income earned...the marginal rate for millions of low- and middle-income workers would spike as they earn more income.
Some families with an income of $40,000 could lose up to 40 cents in vanishing credits for every additional dollar earned from working overtime or taking a new job. As public policy, this is contradictory. The tax credits are sold in the name of "making work pay," but in practice they can be a disincentive to working harder, especially if you're a lower-income couple getting raises of $1,000 or $2,000 a year.
So why work harder? Let someone else work the overtime, or spend weekends at the office, or work an extra job--while you sit at home and wait for President Obama to send you a cut of the working man's check.
Reply:SO basically McCain and YOU are OK with corporate welfare. C'mon Handout, so he is going to take from you and give it to people making 250,000 and less. You know that social welfare programs were reformed and is now run by each individual state, right? Bush has put the country in even more debt. Who is going to pay for it? All of the hard WORKing American people who pay taxes.
Reply:Do you realize that corporate welfare is a failed strategy and that our biggest growth in this nation occured when focus was on the low-to-middle class versus the upper-class?
How many times does history have to show us that a solid fiscal foundation starts from the bottom up?
When you build a house, what is the first step to ensuring long-term stability?
Reply:so wouldnt the same be said for McCain too except he also gives a handout to huge corporations that need it much less than poor or unemployed people in a time when our national debt is outrageous Fact: McCain's plan puts us a couple billion more in debt than Obama so yea i'd rather help people who need it then keep feeding greed like McCain
Reply:He is a communist.
Reply:I'll pay more in taxes not to have McCain/That One in the White House.
Reply:I'm wondering who Obama is getting his economic advice from...
Here is an economic proposal which would be good for either candidate:
In his two-page ad in the Times, Peterson outlines the problem facing the American economy: "As disruptive and damaging as today's mortgage sub-prime crisis is," he warns, "We're looking at a "super sub-prime" crisis, which, if left unaddressed, will hurt many more Americans—and hurt much worse."
Among many inconvenient truths: "Each household's share of the nation's $53 trillion debt is $455,000—almost 10 times the median household income. This is unfinanceable!" he clearly warns.
Vital research and development, infrastructure, and children's programs are already getting squeezed, Peterson writes; "We cannot grow our way out of the problems or solve them simply by cutting earmarks and pork-barrel spending." We could do these things, plus cancel the Bush tax cuts, end the wars in Iraq and Afghanistan—and we would still be only 15 percent of the way to solvency.
Peterson has a few hard questions to ask our presidential candidates. How, for example, do they plan to slow the rate of growth in health care costs that threaten to bankrupt America? How will they encourage the country to save more and reduce our dangerous dependence on foreign lenders? And he wants to know if they support a bi-partisan commission to review everything on the table and make recommendations with a guaranteed up-or-down vote by the next Congress.
Congressman Frank Wolf, my friend, has proposed such a commission, called SAFE—which I've talked about on BreakPoint before. It would examine all entitlements, identify what we can afford—and slash what we cannot. The commission would submit its proposals to Congress for an up-or-down vote. (The only changes permitted would be those that leave the long-term budget impact unchanged.)
Peterson is correctly warning us that no political promise is going to solve our problems. The only thing that will solve it is Americans being willing to accept a whole new way of life. We need to be willing to share sacrifices and make very tough choices. No more politicians promising to socialize everything, which will simply make a horrific problem even worse.
If you visit our website, BreakPoint dot org, you can find the link to the New York Times ad. I urge you to read it, sign the petition, and invite your friends to do the same thing.
Our leaders need to sober up. The sad truth is, they will only do so if we force them to. A grassroots campaign to support SAFE would be a very good start—in fact, the only plan that has any chance of solving this horrific problem.
We have to take back our government—and put America on its feet again. If we don't, our children and grandchildren will pay the price for generations yet to come.
If you're interested in signing this petition, go to this site: http://www.pgpf.org/getinvolved/nyt-deba...
When Obama says he is going to a tax credit do you realize this is a different term for Handout?
It is basically welfare. Bottom line, this is how it's going to be, currently, the top 5% of the populaton is paying for 45% of the taxes, while in contrary, the bottom 50% of the population is paying 10% of the taxes, which basically means the real middle class people are the remaining 45% of the population who is paying for the remaining of the 45% of the taxes. So if you have a job and go to work and pay taxes, you are in this 45%, so do the math, 50% of the population are currently leaching off you by relying on welfare and “refundable tax credits”… Obama’s plan is to increase those tax credit, so now 50% of the population will be paying even less than 10% of the total taxes. When you threaten to slap the hands of the 5% of the population who are currently feeding this nation, they are all strategically planning to move their income elsewhere already, trust me, it’s doable, my client is within that 5% and we could help him cut his taxes by more than half by moving it oversea… If all 5% of those people are doing the same planning, now, you’ll get 5% paying 20% of the taxes, 50% paying 5% of the taxes, where do you think the differences will come from to make up for it? Obama might promise the middle class will not see an “income” tax increase, but he is planning to increase social security (fica) tax instead, the difference is coming from somewhere, trust me, he cannot crap out gold, so under the democrat politic, rob the hard working people, the 45% of the people who go to work and pay taxes to help the lazy and the welfare who sit at home watching jerry springer and popping out kids… So ask yourself, if you are within the 45%, is it hard to get a job that you currently have? What does it take to be where you are? 50% of the population is currently think it’s too much and they rather sit home and leach off of welfare… I rest my case…
Reply:Yes. But here's the truly perverse part of the New Obama Welfare State:
Because Mr. Obama's tax credits are phased out as incomes rise, they impose a huge "marginal" tax rate increase on low-income workers. The marginal tax rate refers to the rate on the next dollar of income earned...the marginal rate for millions of low- and middle-income workers would spike as they earn more income.
Some families with an income of $40,000 could lose up to 40 cents in vanishing credits for every additional dollar earned from working overtime or taking a new job. As public policy, this is contradictory. The tax credits are sold in the name of "making work pay," but in practice they can be a disincentive to working harder, especially if you're a lower-income couple getting raises of $1,000 or $2,000 a year.
So why work harder? Let someone else work the overtime, or spend weekends at the office, or work an extra job--while you sit at home and wait for President Obama to send you a cut of the working man's check.
Reply:SO basically McCain and YOU are OK with corporate welfare. C'mon Handout, so he is going to take from you and give it to people making 250,000 and less. You know that social welfare programs were reformed and is now run by each individual state, right? Bush has put the country in even more debt. Who is going to pay for it? All of the hard WORKing American people who pay taxes.
Reply:Do you realize that corporate welfare is a failed strategy and that our biggest growth in this nation occured when focus was on the low-to-middle class versus the upper-class?
How many times does history have to show us that a solid fiscal foundation starts from the bottom up?
When you build a house, what is the first step to ensuring long-term stability?
Reply:so wouldnt the same be said for McCain too except he also gives a handout to huge corporations that need it much less than poor or unemployed people in a time when our national debt is outrageous Fact: McCain's plan puts us a couple billion more in debt than Obama so yea i'd rather help people who need it then keep feeding greed like McCain
Reply:He is a communist.
Reply:I'll pay more in taxes not to have McCain/That One in the White House.
Reply:I'm wondering who Obama is getting his economic advice from...
Here is an economic proposal which would be good for either candidate:
In his two-page ad in the Times, Peterson outlines the problem facing the American economy: "As disruptive and damaging as today's mortgage sub-prime crisis is," he warns, "We're looking at a "super sub-prime" crisis, which, if left unaddressed, will hurt many more Americans—and hurt much worse."
Among many inconvenient truths: "Each household's share of the nation's $53 trillion debt is $455,000—almost 10 times the median household income. This is unfinanceable!" he clearly warns.
Vital research and development, infrastructure, and children's programs are already getting squeezed, Peterson writes; "We cannot grow our way out of the problems or solve them simply by cutting earmarks and pork-barrel spending." We could do these things, plus cancel the Bush tax cuts, end the wars in Iraq and Afghanistan—and we would still be only 15 percent of the way to solvency.
Peterson has a few hard questions to ask our presidential candidates. How, for example, do they plan to slow the rate of growth in health care costs that threaten to bankrupt America? How will they encourage the country to save more and reduce our dangerous dependence on foreign lenders? And he wants to know if they support a bi-partisan commission to review everything on the table and make recommendations with a guaranteed up-or-down vote by the next Congress.
Congressman Frank Wolf, my friend, has proposed such a commission, called SAFE—which I've talked about on BreakPoint before. It would examine all entitlements, identify what we can afford—and slash what we cannot. The commission would submit its proposals to Congress for an up-or-down vote. (The only changes permitted would be those that leave the long-term budget impact unchanged.)
Peterson is correctly warning us that no political promise is going to solve our problems. The only thing that will solve it is Americans being willing to accept a whole new way of life. We need to be willing to share sacrifices and make very tough choices. No more politicians promising to socialize everything, which will simply make a horrific problem even worse.
If you visit our website, BreakPoint dot org, you can find the link to the New York Times ad. I urge you to read it, sign the petition, and invite your friends to do the same thing.
Our leaders need to sober up. The sad truth is, they will only do so if we force them to. A grassroots campaign to support SAFE would be a very good start—in fact, the only plan that has any chance of solving this horrific problem.
We have to take back our government—and put America on its feet again. If we don't, our children and grandchildren will pay the price for generations yet to come.
If you're interested in signing this petition, go to this site: http://www.pgpf.org/getinvolved/nyt-deba...
Is there still a tax credit/rebate in California for hybrid vehicles?
I have all the Federal information. But I've looked every where for information on a credit/rebate from the state of California and can't find anything.
If anyone has a link to a form or information I would really appreciate it!
Is there still a tax credit/rebate in California for hybrid vehicles?
There was an incentive program in Santa Barbara county, but that program is now over.
There were the single-occupancy HOV lane stickers, but no new stickers are being issued (so if you want one you have to purchase a used hybrid that already has the stickers - at the premium that those stickers demand).
There are some bills in CA state legislation for some hybrid state tax deductions or credits, but the legislation has not been passed.
Los Angeles, San Jose, and Hermosa Beach do have free city parking programs for hybrids, under certain restrictions, however.
http://go.ucsusa.org/hybridcenter/incent...
http://www.eere.energy.gov/afdc/progs/vi...
Do note that most hybrids are exempt from the initial, biennial, and change of ownership CA Smog Check inspections, through Jan. 1, 2010:
http://www.dca.ca.gov/publications/press...
http://www.smogcheck.ca.gov/StdPage.asp?...
More info on the US Federal tax credit:
http://www.irs.gov/newsroom/article/0,,i...
http://www.irs.gov/newsroom/article/0,,i...
http://www.fueleconomy.gov/feg/tax_hybri...
and there is a letter-writing campaign to remove the sunset/phaseout provision on the federal hybrid vehicle tax credit: http://ucsaction.org/campaign/02_01_hybr...
Reply:the rebate should come from the dealer from what i understant that they are to rebound the info to you for payment
tanning
If anyone has a link to a form or information I would really appreciate it!
Is there still a tax credit/rebate in California for hybrid vehicles?
There was an incentive program in Santa Barbara county, but that program is now over.
There were the single-occupancy HOV lane stickers, but no new stickers are being issued (so if you want one you have to purchase a used hybrid that already has the stickers - at the premium that those stickers demand).
There are some bills in CA state legislation for some hybrid state tax deductions or credits, but the legislation has not been passed.
Los Angeles, San Jose, and Hermosa Beach do have free city parking programs for hybrids, under certain restrictions, however.
http://go.ucsusa.org/hybridcenter/incent...
http://www.eere.energy.gov/afdc/progs/vi...
Do note that most hybrids are exempt from the initial, biennial, and change of ownership CA Smog Check inspections, through Jan. 1, 2010:
http://www.dca.ca.gov/publications/press...
http://www.smogcheck.ca.gov/StdPage.asp?...
More info on the US Federal tax credit:
http://www.irs.gov/newsroom/article/0,,i...
http://www.irs.gov/newsroom/article/0,,i...
http://www.fueleconomy.gov/feg/tax_hybri...
and there is a letter-writing campaign to remove the sunset/phaseout provision on the federal hybrid vehicle tax credit: http://ucsaction.org/campaign/02_01_hybr...
Reply:the rebate should come from the dealer from what i understant that they are to rebound the info to you for payment
tanning
US Fed tax question about Child Credit?
What are the limitis on AGI to get the full $1000 child tax credit? I have 2 kids and AGI is about 130K; will I be able to get the full $2000 credit for 2 kids?
US Fed tax question about Child Credit?
The Child Tax Credit begins to phase out at $110,000 (AGI) for MFJ filers. Teh reduction is $50 per $1,000 over that amount. If your AGI were exactly $130,000 your CTC would be reduced by $1,000 for the two children.
US Fed tax question about Child Credit?
The Child Tax Credit begins to phase out at $110,000 (AGI) for MFJ filers. Teh reduction is $50 per $1,000 over that amount. If your AGI were exactly $130,000 your CTC would be reduced by $1,000 for the two children.
People should get tax credit for paying child support? dont you think ?
Everybody who has a child claims a dependent, so why not give tax credit to the person that is paying child support, it would be fair to give credit for it.
People should get tax credit for paying child support? dont you think ?
Because why should you get to get money back or a reduction in your tax liability for providing a monthly check for contributing to the support your child. What you provide in child support only puts a small dent into the cost of housing, clothing,educating, providing medical care, transportation, food, and the other many need of YOUR child.
You do not provide enough in support with a monthly check to qualify to claim the child as a dependant or for any of the credits or deductions.
This goes for whether its the Mother or the Father paying child support.
Reply:I think that is a good idea.
Reply:A support agreement can include a provision that the payor gets the dependency exemption for the child(ren). You would then also be entitled to the child tax credit for those under 17. If the agreement is silent or assigns the exemption to the custodial parent, there is a form to be used to release the exemption to the payor.
Procedures will vary state to state, so you should check with the appropriate agency and/or engage an attorney.
Reply:The custodidal parent can allow the one paying child support to claim the exemption of their return. You can also get it written in the divorce decree that the one paying child support can claim them every year/every other year or some other method agreed upon by the parents of the child. A child can only be claimed on one return, and the best you get is the exemption and child tax credit. EIC goes to who the child lived with. Don't try to claim it if the child didn't live with you. You can get slapped with a huge penalty and have to get a professional to prepare your taxes for 10 years.
Best to get this done at the divorce/custodial hearing. If you didn't ask for it, you had a lousy lawyer. Try to renegatiate, especially if the tax benefits are not being used (ie, your ex doesn't work and has not gotten remarried). Also, of she/he has not legally(or commen law) married, the new partner cannot claim the children on their return anymore (as of 2005 tax year).
Reply:i do not think we should have to pay income tax ,, period
Reply:sure do but good luck
People should get tax credit for paying child support? dont you think ?
Because why should you get to get money back or a reduction in your tax liability for providing a monthly check for contributing to the support your child. What you provide in child support only puts a small dent into the cost of housing, clothing,educating, providing medical care, transportation, food, and the other many need of YOUR child.
You do not provide enough in support with a monthly check to qualify to claim the child as a dependant or for any of the credits or deductions.
This goes for whether its the Mother or the Father paying child support.
Reply:I think that is a good idea.
Reply:A support agreement can include a provision that the payor gets the dependency exemption for the child(ren). You would then also be entitled to the child tax credit for those under 17. If the agreement is silent or assigns the exemption to the custodial parent, there is a form to be used to release the exemption to the payor.
Procedures will vary state to state, so you should check with the appropriate agency and/or engage an attorney.
Reply:The custodidal parent can allow the one paying child support to claim the exemption of their return. You can also get it written in the divorce decree that the one paying child support can claim them every year/every other year or some other method agreed upon by the parents of the child. A child can only be claimed on one return, and the best you get is the exemption and child tax credit. EIC goes to who the child lived with. Don't try to claim it if the child didn't live with you. You can get slapped with a huge penalty and have to get a professional to prepare your taxes for 10 years.
Best to get this done at the divorce/custodial hearing. If you didn't ask for it, you had a lousy lawyer. Try to renegatiate, especially if the tax benefits are not being used (ie, your ex doesn't work and has not gotten remarried). Also, of she/he has not legally(or commen law) married, the new partner cannot claim the children on their return anymore (as of 2005 tax year).
Reply:i do not think we should have to pay income tax ,, period
Reply:sure do but good luck
Subscribe to:
Posts (Atom)
