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  #1  
Old Apr 27, '08, 5:42 pm
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lifeisbeautiful lifeisbeautiful is offline
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Default Tax Breaks and children

I probably won't see/talk with my tax man until next year, but he had told us this year something about how after 2 kids you don't get any more deductions for children... or something like that. We had our third this year so I have never had my taxes done with more than 2 kids, but I was just wondering if anyone knows a little more on this subject and can explain the effects on taxes of any children born after the second child in the family or if there are absolutely no effects (ie same deductions whether you have 2 or 20 dependents).
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  #2  
Old Apr 27, '08, 6:19 pm
1ke 1ke is offline
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Default Re: Tax Breaks and children

Look at the instructions for the 1040, it explains dependents. You can claim each child who is a qualified dependent-- that is based on their age, relationship, and % of time they live with you during the year.

Maybe he was referring to the Earned Income Tax Credit, it looks like that may be capped from what I can see on the IRS website, have you claimed that in the past?
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Old Apr 27, '08, 6:31 pm
C2K2 C2K2 is offline
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Default Re: Tax Breaks and children

From helping my IL do thier taxes online they could only claim two kids for the Earned Income Credit but you get to claim each kid. I know we have 4
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  #4  
Old Apr 28, '08, 10:47 am
Al Masetti Al Masetti is offline
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Default Re: Tax Breaks and children

Read up on The Fair Tax ... it would eliminate the income tax, the payroll tax (social security tax), the corporate income tax, the inheritance tax, and a bunch of other taxes along with abolishing the Internal Revenue Service.

www.fairtax.org

and

www.boortz.com

No more tax forms for anyone.

There would be a net zero, revenue neutral retail only sales tax and a prebate that would go equally to every citizen ... and compensate everyone up to the poverty level.

The beauty of the Fair Tax is that it is totally transparent. The problem with the present system of taxes (67000 pages of tax code) is that the taxes are not only withheld so you don't feel it, but the present system totally lacks transparency. No one knows how much the Feds are taking.

Visit www.atr.org for discussions about transparency (and other issues).

Ask your librarian to get copies of Grover Norquist's "Leave Us Alone" and the Fair Tax books.

The FairTax Act (HR 25, S 1025) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.

Congressman John Linder is Neal Boortz's co-author of the Fair Tax ... and has been introducing legislation (H.R. 25 in this session of Congress) and which is getting more and more co-sponsors.

Visit http://www.johnlinder.com/ for more details of the internal Congressional campaign.

Read up on it and spread the word.

The only folks seriously opposed to it are the lobbyists who make nice livings getting special favors for their clients trying to negotiate through an incomprehensible system.

Keep in mind also, that a complex tax system is favored by Marxism. The Fair Tax would cut that kind of stuff off at the knees.

Last edited by Al Masetti; Apr 28, '08 at 10:59 am.
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  #5  
Old Apr 30, '08, 3:25 pm
mmyers mmyers is offline
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Default Re: Tax Breaks and children

I just asked my husband, who is a CPA and he said that there is no easy answer because he does not know your income or whether you are using standard deductions or itimizing (generally you would oly do this if you own your own home).

If you are recieving EIC (Earned Income Credit)...this only includes the two children. Depending on where your income is you could get child tax credits for each child (Ithink up to four, but don't quote me). Ultimately he said that additional children will get you some benifit tax wise. This benifit could be lowered by an increase in income.
I'm sure he will come home and check my work, so if there is anything to add I will let you know.
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