Are individuals with at least 7 children/dependents exempt from paying taxes?

Question

A bus driver told me that after the birth of his seventh child he was permanently excluded from paying all taxes.

Answer 1

It depends on how much you make, no you are not permantantly excluded from taxes. For each child you have you will get one exemption. Each exemption in 2006 is worth $3300. 7*3300= 23100. Plus you get one for yourself and one for your spouse, so that's an additional 6600+23100= $29700. If you are married you will also get a standard deduction of 10300 unless you itemize. so 10300+29700= $40,000. For federal tax, you can make up to $40,000 combined if you're married without being taxed one red cent. If you qualify for child tax credit, you can make even more without being taxed. Point is, you are not excluded from tax, but you will have to be making quite a lot in order to pay taxes. States taxes differ from federal and usually don't have as high of exemption rates as federal, so that amount would be lower, this goes for local/city taxes as well. There is also a flat tax called FICA that is taken out of your paychecks. Social security takes 6.2%, up to the first $90,000 income from an employer, and then medicare takes 1.45% from your check without a limit. So the total flat tax is 7.65%. I hope this answers your question!

Answer 2

I'm reading the replies here and finally signed in and decided to answer. I know a family that has 10 kids from age 4-25 maybe? Anyway, I'm told that they would be exempt once they hit 12. Maybe true, maybe not. I have 4 children myself, and we pay taxes. I wouldn't want 12 or 7 or whatever the number is in order to be exempt. We do end up getting more back than we pay in most years, which is nice....but we still pay taxes. Think of the food bills and school bills, etc. Would it even matter much to not ay taxes? All the extra money would go out for clothes and food and such!!

Answer 3

No, I don't think so. As far as I have been taught, all citizens are responsible for paying taxes unless they are exempt for reasons, and those I'm not sure about, but having children probably isn't one of them. I have 4 kids and trust me, we pay plenty of taxes each year. I think you should do some reasearch on the H & R Block or the IRS websites and see if it could be true.

Answer 4

Get real! No you are not exempt from paying taxes. You are in a different bracket but the people who think they can just sit around and spit out tax deductions are not thinking about long term financial problems!

Answer 5

I live in WI years ago you got a predetermined amount back for each kid but that changed now if I had 7 it would be so much back for a couple of kids and the rest meant nothing. I don't know what state your in but it is very hard to believe because they are trying not to reward people for the more kids they have because that would just increase the amount of kids people had just to get out of it that's why you can only get welfare until the youngest is school age.

Answer 6

don't look now but the middle class just received, from the man who said he would not raise taxes on the middle class by one dime, the largest tax increase - ever. and an extra bonus for small business who also received most of the taxes in the obama tax health bill, these will also be passed on to the consumer. are we lucky or what. take a few minutes and read the article by ernst & young on the obama tax increase, it will cost another 700,000 jobs lost. but of course you will not see this on the main line liberal news stations. do a little research. With the combination of these tax changes at the beginning of 2013 the top tax rate on ordinary income will rise from 35% in 2012 to 40.9%, the top tax rate on dividends will rise from 15% to 44.7% and the top tax rate on capital gains will rise from 15% to 24.7%. …. This report finds that these higher marginal tax rates result in a smaller economy, fewer jobs, less investment, and lower wages. Specifically, this report finds that the higher tax rates will have significant adverse economic effects in the long-run: lowering output, employment, investment, the capital stock, and real after-tax wages when the resulting revenue is used to finance additional government spending

Answer 7

No, sorry. Employer tax withholding tables go up to 9 dependents and have formulas for additional. There is, however, the distinct possiblity that his tax bill will be $0, depending on how much he makes.

Answer 8

We have 7 kids. And we still pay taxes.

Answer 9

I would say it varies from state to state, but then, taxes are government,no matter where you are. My neice said that she doesn't have to pay taxes if she has 12 kids. I told her, "Well, you're half way there, go for it!"

Answer 10

no, they aren't. not generally, at least. due to other economic reasons, the bus driver might be exempt, but its not something that happens automatically.