we don't qualify for earned income credit. I am thinking it will just be like 600
2006-08-19 04:16:28 · 6 answers · asked by Rachel☺ 5 in Business & Finance ➔ Taxes ➔ United States
The value of an exemption for tax year 2005 was $3,200.00. The impact on your tax liability would be determined by your marginal tax rate. Depending on your AGI, your marginal rate is either 15% or 25%. Most likely it's 15% but I've provided the numbers for both.
At 15%, the exemption is worth $480.00.
At 25%, the exemption is worth $800.00
The personal exemption for tax year 2006 has been set at $3,300.00 however this is subject to change at the whim of Congress. Assuming that it stays the same, and the marginal rates stay the same:
At 15%, the exemption is worth $495.00
At 25%, the exemption is worth $825.00
Please ignore the recommendation to plug the numbers into a prior year's tax return. Tax laws change frequently and what was a valid answer for 2 years ago may be meaningless today or tomorrow.
2006-08-19 06:36:13 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
each exemption is $3300 in accordance to year. The mark downs is your tax on that volume. it actual relies upon on your tax bracket. it may be $330-$1155. you could also get further mark downs through claiming head of kinfolk. That places you right into a decrease bracket. Earned earnings credit is purely for persons with little or no earnings.
2016-11-30 19:52:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Some of those tax prep software programs have a forecasting function that uses current year data and tax rules -- if you have one of those, then the suggestion to do a with and without calculation is a pretty good idea.
2006-08-19 12:04:55 · answer #3 · answered by TaxGuru 4 · 0⤊ 0⤋
The best way for you to figure out the answer to this question is to run your taxes through a program such as TurboTax and see the difference with you son as a dependent and without.
Don't worry that it's not the correct tax year; it doesn't make any difference for the issue you're validating.
Good luck!
2006-08-19 04:28:40 · answer #4 · answered by nora22000 7 · 0⤊ 1⤋
well... the guy pretty much said everything...
you get a 3200 exemption and perhaps child tax credit if your son is under 17 i believe
2006-08-19 07:40:41 · answer #5 · answered by bbbryan14 2 · 0⤊ 0⤋
You would get back $700.00 now. The laws have changed, was $600.00. I hope I answered your question. Good luck Zella
2006-08-19 04:28:08 · answer #6 · answered by ? 2 · 0⤊ 1⤋