Tax Question... Having a child. - GoFuckYourself.com

CPimp · 02-07-2010, 03:02 PM

My sister in law had a kid and has been on unemployment all year. She had the kid Jan 30th last year (in 2009). So, she's be able to get the Earned Income Tax Credit, if I understand correctly.

Now, this tax credit which I see is up to $3047 for one child, do they actually send her a check for that amount if she doesn't owe any taxes? How exactly does that work?

She's from the US, obviously and we live in Ohio if it matters. Thanks guys.

Keep in mind I am asking just for opinions, not looking for free professional information LOL. So don't tell me to google it, I already did. Dont tell me to consult a tax person, as it's not my problem and I am just curious, for when my woman and I have a child. Thanks!

ShellyCrash · 02-07-2010, 03:08 PM

Well, this is what I can tell you. Traditionally, even on unemployment, most states automatically deduct income tax, so even w/o working she's probably "paid in" something.

Typically, you can't get back more than you've paid in, but I don't know about earned income tax credits, special rules may apply.

CPimp · 02-07-2010, 03:20 PM

Here in Ohio we have the option to deduct taxes from unemployment income or not to, and she chose not to.

PersianKitty · 02-07-2010, 03:23 PM

She has to have earned income within the tax year in order to get the Earned Income Tax Credit. Unemployment income is not considered earned income.

More info on the EITC
http://www.irs.gov/individuals/artic...=96406,00.html

Info on what is and isn't earned income
http://www.irs.gov/individuals/artic...176508,00.html

If someone is eligible it is a credit which is received if it is excess of taxes owed. IOW if you are eligible you get all of it or part of it net of your total tax due and any withholding or other credits.

CPimp · 02-07-2010, 03:34 PM

She worked 28 days, from jan 1 to jan 28 before she popped her kid out. So with that earned income, like 700 dollars or so, I wonder if that would make her eligible since she actually earned the income. Or would the standard deductions and everything else end up cancelling her credit out?

GatorB · 02-07-2010, 03:36 PM

Quote:

Originally Posted by tube2k

She worked 28 days, from jan 1 to jan 28 before she popped her kid out. So with that earned income, like 700 dollars or so, I wonder if that would make her eligible since she actually earned the income. Or would the standard deductions and everything else end up cancelling her credit out?

For $700 and one child she's entitled to $247 in earned income credit.

Vjo · 02-07-2010, 05:45 PM

Credits are applied on any tax she would have owed after her income taxes. They are applied to your tax bill. But if you have no taxes or less than the credit you do not get it in cash.

At least I think that is it but don't hold me to it.

candyflip · 02-07-2010, 07:38 PM

You have to have earned above a certain amount and under a certain amount to get the credit.

You don't just get a check for the amount if you've been unemployed and aren't collecting a paycheck.

The keywords are "EARNED INCOME" of which she has none.

HandballJim · 02-07-2010, 08:16 PM

just go to taxactonline.com and you can do your return for free, they bring you through a series of questions...real easy. you can just join and do your return and see what your getting back...you don't have to send it but at least you will know the answer to your question.

CPimp · 02-07-2010, 09:40 PM

Thanks for the input guys. I just wanted to see if you all knew anything. I am not going into it all myself, as it doesn't really matter to me what she gets, really. Mainly wanted to know for future reference, etc. Thanks!

02-07-2010, 03:02 PM	#1
CPimp Confirmed User Industry Role: Join Date: Aug 2009 Posts: 2,346	Tax Question... Having a child. My sister in law had a kid and has been on unemployment all year. She had the kid Jan 30th last year (in 2009). So, she's be able to get the Earned Income Tax Credit, if I understand correctly. Now, this tax credit which I see is up to $3047 for one child, do they actually send her a check for that amount if she doesn't owe any taxes? How exactly does that work? She's from the US, obviously and we live in Ohio if it matters. Thanks guys. Keep in mind I am asking just for opinions, not looking for free professional information LOL. So don't tell me to google it, I already did. Dont tell me to consult a tax person, as it's not my problem and I am just curious, for when my woman and I have a child. Thanks! __________________ three 997 three 55 three 1 ← That's my ICQ. Contact me there. Thanks.

02-07-2010, 03:08 PM	#2
ShellyCrash Confirmed User Join Date: Jun 2004 Location: Tampa Bay, FL Posts: 6,708	Well, this is what I can tell you. Traditionally, even on unemployment, most states automatically deduct income tax, so even w/o working she's probably "paid in" something. Typically, you can't get back more than you've paid in, but I don't know about earned income tax credits, special rules may apply. __________________ Start making money with the hottest hookup site! up to $55 PPS or up to 75% Revshare ICQ 196766477

02-07-2010, 03:20 PM	#3
CPimp Confirmed User Industry Role: Join Date: Aug 2009 Posts: 2,346	Here in Ohio we have the option to deduct taxes from unemployment income or not to, and she chose not to. __________________ three 997 three 55 three 1 ← That's my ICQ. Contact me there. Thanks.

02-07-2010, 03:23 PM	#4
PersianKitty Meow Media Inc. Industry Role: Join Date: Jul 2001 Location: In the valley of the sun, cactus, tacos, tequila, and nod Posts: 7,785	She has to have earned income within the tax year in order to get the Earned Income Tax Credit. Unemployment income is not considered earned income. More info on the EITC http://www.irs.gov/individuals/artic...=96406,00.html Info on what is and isn't earned income http://www.irs.gov/individuals/artic...176508,00.html If someone is eligible it is a credit which is received if it is excess of taxes owed. IOW if you are eligible you get all of it or part of it net of your total tax due and any withholding or other credits. __________________ Wondering what webmaster programs PK uses? Check them out here!

02-07-2010, 03:34 PM	#5
CPimp Confirmed User Industry Role: Join Date: Aug 2009 Posts: 2,346	She worked 28 days, from jan 1 to jan 28 before she popped her kid out. So with that earned income, like 700 dollars or so, I wonder if that would make her eligible since she actually earned the income. Or would the standard deductions and everything else end up cancelling her credit out? __________________ three 997 three 55 three 1 ← That's my ICQ. Contact me there. Thanks.

02-07-2010, 05:45 PM	#7
Vjo So Fucking Banned Industry Role: Join Date: Oct 2002 Location: Happy 4th of July :) Posts: 6,082	Credits are applied on any tax she would have owed after her income taxes. They are applied to your tax bill. But if you have no taxes or less than the credit you do not get it in cash. At least I think that is it but don't hold me to it.

02-07-2010, 07:38 PM	#8
candyflip Carpe Visio Industry Role: Join Date: Jul 2002 Location: New York Posts: 43,061	You have to have earned above a certain amount and under a certain amount to get the credit. You don't just get a check for the amount if you've been unemployed and aren't collecting a paycheck. The keywords are "EARNED INCOME" of which she has none. __________________ Spend you some brain. Email Me

02-07-2010, 08:16 PM	#9
HandballJim Confirmed User Industry Role: Join Date: Sep 2008 Location: NYC Posts: 4,024	just go to taxactonline.com and you can do your return for free, they bring you through a series of questions...real easy. you can just join and do your return and see what your getting back...you don't have to send it but at least you will know the answer to your question. __________________ HOW I MAKE LOTS OF $$$

02-07-2010, 09:40 PM	#10
CPimp Confirmed User Industry Role: Join Date: Aug 2009 Posts: 2,346	Thanks for the input guys. I just wanted to see if you all knew anything. I am not going into it all myself, as it doesn't really matter to me what she gets, really. Mainly wanted to know for future reference, etc. Thanks! __________________ three 997 three 55 three 1 ← That's my ICQ. Contact me there. Thanks.