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"If you already have a zero tax liability and get a NEW credit it might actually increase the household income... " How exactly does that happen for someone earning $25Gs, Matt? Just curious.
Well for instance with the EITC, as I understand it, you can say earn maybe say $15k and pay no taxes and get a refund back... or you can end up getting a refund for MORE than what was withheld from your pay for (income) taxes... iow it is a true CREDIT to your account...
(the C in EITC stands for CREDIT...)
This is opposed to a tax DEDUCTION which is an amount you can subtract from your gross income... so you earn 35K and have a tax DEDUCTION of 5k and then you use the table for 30k income... (30k - 5k = 30k)
If you earn $35K and have no deductions and use the table for 35K and your tax bill is 2k and you have had 2k withheld, and Trump gives you a 5k CREDIT, you get a refund of 3k, ie govt sends you a check for 3k...
Tax Accounting:
What is 'Tax Accounting' Tax accounting consists of accounting methods that focus on taxes rather than the appearance of public financial statements. Tax accounting is governed by the Internal Revenue Code which dictates the specific rules that companies and individuals must follow when preparing their tax returns. Tax principles often differ from generally accepted accounting principles.
Read more: Tax Accounting http://www.investopedia.com/terms/t/tax-accounting.asp#ixzz4u7Vui1Cl Follow us: Investopedia on Facebook
The fiscal year 2018 budget plan that the House Budget Committee approved in July calls for a major change in the Earned Income Tax Credit (EITC) that could adversely affect millions of low-income working families and cause serious problems for the IRS in processing tax returns. The budget would delay EITC payments each year until the IRS verifies every EITC filer’s income.[1] This would entail the IRS corroborating the income information for 28 million tax returns each year, a massive undertaking that likely would require months of work and interfere with the IRS’ ability to perform other functions, unless Congress raised IRS funding sharply.
You have a bunch of USD zombie scum bag Russians filing phony returns and jumping in front of real US filers showing EITC-type applicable results and getting the refund wired into accounts set up just for the fraud and then immediately wiring the USDs out into a Western Union account and at that point it is non-reversable they way our morons currently have it set up...
If you set it up as a EITC-type filing, you have typically received the refund pronto...
This has been disgraced USD obsessed Russia's key export product other than the vodka they dont drink themselves ... which we now have Tito's here in the US which is a lot better and oil at $50 so their exports have collapsed...
"If you earn income and make less than $47,955 in 2016 ($53,505 if filing jointly), you may qualify for the earned income credit. This credit is refundable – meaning you may get more money in your refund than you had withheld from your pay. In fact, you may get money back even if you didn't have any income tax withheld from your pay."
This is how CREDITS work vice DEDUCTIONS.... DEDUCTIONS suck... you want CREDITS....
Trump's healthcare thing was a $4k advance refundable CREDIT which means they put 1/12 of $4k in your HSA on the first of the month no matter what munnie you make... munnie is there on 1st of month...
RUSH: The earned income tax credit. I did some checking during the break. I can’t find anything on it. It’s not mentioned. USA Today says that it remains but is untouched. But other sources… The Washington Post says that top Republican officials haven’t decided to do with earned income tax credit. Do you know what that is, folks? The earned income tax credit is a way of assuming poor people earn money. You just assume they earn money and the amount is based on a formula, “the earned income.”
And then they get a credit on what their taxes would be if they earned it. They didn’t earn it. We assume that they did, and then give them a tax rate based on what they didn’t pay. Now, the typical Washington thinking behind this is that this is how we’re going to reward people who work, who try to get a job, as opposed to sit there and just cash welfare checks or food stamps or whatever. But this is all part and parcel of that statistic that 50% of income earners in America don’t pay any income tax. The earned income tax credit ends up giving, essentially, tax refunds because an earned amount of income is assumed, is calculated. And then they calculate what tax rate and what taxes would have been paid on that assumed income, and then after assuming the person paid the tax, then they refund it. The only thing missing is that nobody paid anything. It’s all… It’s a scam. It is a way for… A lot of illegal immigrants capitalize on this, but a lot of poor Americans do too....
10 comments:
"Tax Credits for Children, New Tax Credit for Non-Child Dependents: Anything that reduces the tax burden has the potential to increase demand"
If you already have a zero tax liability and get a NEW credit it might actually increase the household income...
"If you already have a zero tax liability and get a NEW credit it might actually increase the household income... " How exactly does that happen for someone earning $25Gs, Matt? Just curious.
Well for instance with the EITC, as I understand it, you can say earn maybe say $15k and pay no taxes and get a refund back... or you can end up getting a refund for MORE than what was withheld from your pay for (income) taxes... iow it is a true CREDIT to your account...
(the C in EITC stands for CREDIT...)
This is opposed to a tax DEDUCTION which is an amount you can subtract from your gross income... so you earn 35K and have a tax DEDUCTION of 5k and then you use the table for 30k income... (30k - 5k = 30k)
If you earn $35K and have no deductions and use the table for 35K and your tax bill is 2k and you have had 2k withheld, and Trump gives you a 5k CREDIT, you get a refund of 3k, ie govt sends you a check for 3k...
Tax Accounting:
What is 'Tax Accounting'
Tax accounting consists of accounting methods that focus on taxes rather than the appearance of public financial statements. Tax accounting is governed by the Internal Revenue Code which dictates the specific rules that companies and individuals must follow when preparing their tax returns. Tax principles often differ from generally accepted accounting principles.
Read more: Tax Accounting http://www.investopedia.com/terms/t/tax-accounting.asp#ixzz4u7Vui1Cl
Follow us: Investopedia on Facebook
The fiscal year 2018 budget plan that the House Budget Committee approved in July calls for a major change in the Earned Income Tax Credit (EITC) that could adversely affect millions of low-income working families and cause serious problems for the IRS in processing tax returns. The budget would delay EITC payments each year until the IRS verifies every EITC filer’s income.[1] This would entail the IRS corroborating the income information for 28 million tax returns each year, a massive undertaking that likely would require months of work and interfere with the IRS’ ability to perform other functions, unless Congress raised IRS funding sharply.
Verifying Incomes of All EITC Filers Would Delay Refunds, Raise Costs, Divert IRS Resources from More Effective Uses
Tom,
that is a result of the REAL Russian hacking...
You have a bunch of USD zombie scum bag Russians filing phony returns and jumping in front of real US filers showing EITC-type applicable results and getting the refund wired into accounts set up just for the fraud and then immediately wiring the USDs out into a Western Union account and at that point it is non-reversable they way our morons currently have it set up...
http://archive.jsonline.com/business/cybercriminals-find-a-new-way-to-cheat-on-taxes-b99444785z1-292024551.html/
If you set it up as a EITC-type filing, you have typically received the refund pronto...
This has been disgraced USD obsessed Russia's key export product other than the vodka they dont drink themselves ... which we now have Tito's here in the US which is a lot better and oil at $50 so their exports have collapsed...
MRW,
here:
https://www.taxact.com/tax-information/about-your-taxes/earned-income-credit
"If you earn income and make less than $47,955 in 2016 ($53,505 if filing jointly), you may qualify for the earned income credit. This credit is refundable – meaning you may get more money in your refund than you had withheld from your pay. In fact, you may get money back even if you didn't have any income tax withheld from your pay."
This is how CREDITS work vice DEDUCTIONS.... DEDUCTIONS suck... you want CREDITS....
Trump's healthcare thing was a $4k advance refundable CREDIT which means they put 1/12 of $4k in your HSA on the first of the month no matter what munnie you make... munnie is there on 1st of month...
Yeah it's a real big problem, Matt.
In fiscal 2013, the IRS initiated 1,492 criminal investigations related to ID theft.
No mention of "Russians."
RUSH: The earned income tax credit. I did some checking during the break. I can’t find anything on it. It’s not mentioned. USA Today says that it remains but is untouched. But other sources… The Washington Post says that top Republican officials haven’t decided to do with earned income tax credit. Do you know what that is, folks? The earned income tax credit is a way of assuming poor people earn money. You just assume they earn money and the amount is based on a formula, “the earned income.”
And then they get a credit on what their taxes would be if they earned it. They didn’t earn it. We assume that they did, and then give them a tax rate based on what they didn’t pay. Now, the typical Washington thinking behind this is that this is how we’re going to reward people who work, who try to get a job, as opposed to sit there and just cash welfare checks or food stamps or whatever. But this is all part and parcel of that statistic that 50% of income earners in America don’t pay any income tax.
The earned income tax credit ends up giving, essentially, tax refunds because an earned amount of income is assumed, is calculated. And then they calculate what tax rate and what taxes would have been paid on that assumed income, and then after assuming the person paid the tax, then they refund it. The only thing missing is that nobody paid anything. It’s all… It’s a scam. It is a way for… A lot of illegal immigrants capitalize on this, but a lot of poor Americans do too....
Rush, Trump’s Tax Policy Is Populist, Not Conservative
ok, Could be Mexicans too good point.... substitute tequila for vodka....
Wow sounds like Rush knows his Darwin like the back of his hand... probably did well in high school biology...
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