Would someone who made more this year get back more for claiming kids than someone who made less?

Question

Just wondering because of earned income credit?

Answer 1

I am not able to answer your questions as asked but I note "get back"

When I was in public accounting, a number of clients always based the "success" of their tax return based on the amount of the refund. Their incomes would be the same year after year. They would change tax preparers and then compare their refunds. They felt the other guy got them a bigger refund so they were going back to him or her.

Sounds logical right? It is not.

I took the tax that was due and matched their withholding to pay in only to what would be due. We would then prepare the return and there would be a minimal refund. They owed the same amount of tax but because I had them pay in only what they owed there was no "refund".

I can get you the biggest refund if I allow you to pay too much in. I can have you change your withholding to say single and no dependents when actually it should be married and double digit dependents.

If cash flow is important, find a tax preparer who will work with you to adjust your withholding so that it more closely matches that final amount that you will owe. This is especially true if there are changes in your life; marriage, kids, divorce etc.

The issue is not getting money back but paying in only what is due.

Answer 2

You'd need to figure it both ways, since the answer depends on how much more or less the two parties made, how much they made total, and how many kids are involved.

But there are rules for who can claim the kids - you need to be sure that you're following those.

Answer 3

depends on the income level. The standard deduction per child does not change no matter how much you make.

Answer 4

it depends on the other deductions they had and how much more they made than the other person.

Answer 5

Up to a certain amount, then it's less.