i have heard twice since christmas that when you have 12 kids you are exempt from paying taxes?!???!!?!? i think its baloney but i cant find it anywhere (snopes.com/overall yahoo search etc) can anyone help or direct me to a source?
2007-01-08 12:46:01 · 6 answers · asked by CURIOSITY 1 in Business & Finance ➔ Taxes ➔ United States
No, it's not true, but you'd have so many exemptions and credits if you had 12 kids still eligible to be claimed as dependents that unless you made a very high salary you probably wouldn't pay any taxes. If you were married and had 12 kids, all under 17 so you could still get the child tax credit for them, you could make around $135,000 for the year, and would not owe any taxes. From your income you could at a minimum subtract $56,500 from your income in standard deduction and exemptions, then calculate your taxes and subtract the CTC's.
I'd guess that these days, claiming 12 kids would get you a letter from the IRS asking for copies of the 12 birth certificates. But if you really had that many kids, you'd be legal.
You aren't likely to find something that says "having 12 kids does not exempt you from paying taxes" but you can look at irs.gov, either instructions for any of the 1040's or Publication 17 under "who must file" and there's nothing there about having 12 kids and being exempt from taxes.
2007-01-08 13:21:16 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
It is foolishness. It is hard to find a source to show something is not true, because their can be an infinite amount of untruths. The fact is you can only claim a certain number of dependants, and each dependant only reduces your tax liability by a finite numerical amount.
If you make $10k a year and have 12 kids, you may not pay any income taxes; however, if you have 12 kids and make $90k, you will certainly be paying taxes on your income.
2007-01-08 12:51:51 · answer #2 · answered by Anonymous · 1⤊ 1⤋
No, this is not true.
Some people may say that because when you have 1 or 2 kids and fall in low income brackets, you can get about a $4500 credit for EIC and there are also other credits like child tax credit.
2007-01-08 12:51:06 · answer #3 · answered by Smart1 3 · 1⤊ 0⤋
There is definitely not a 12 kid rule.
I have seen a return with 13 kids. They didn't have much of a liability, but they had one.
2007-01-08 14:03:48 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
You can't find anything on it because it does not exist.
2007-01-08 14:03:32 · answer #5 · answered by Ovrtaxed 4 · 0⤊ 1⤋
Not true
2007-01-12 12:10:02 · answer #6 · answered by WendyD1999 5 · 0⤊ 0⤋