I am getting ready to do my taxes and I was wondering how much money I should be getting from my Federal taxes for having one child?
2007-01-22 10:41:48 · 5 answers · asked by karateface 2 in Business & Finance ➔ Taxes ➔ United States
In 2006, the amount you can deduct (called an "exemption") for a dependent on your tax return is $3,300. This amount usually increases each year.
If you have two dependents, you can deduct $3,300 per dependent, for a total deduction of $6,600. If you have three dependents, the total deduction is $9,900, and so on.
There is a limit, though. If you're a high-income taxpayer, your deductions for exemptions may be phased out. This means that at a certain income, you can't take the full deduction of $3,300 per dependent in 2006. At even higher incomes, the deduction amount for your dependents is zero.
2007-01-22 10:58:24 · answer #1 · answered by john_zoltan 1 · 0⤊ 0⤋
There's no way for us to estimate that for you, since you didn't disclose your income, federal withholding or filing status.
Credits are based on qualifying children and earned income.
The Child Tax Credit is $1,000 per child but only reduces your tax liability. Your tax liability is what's left after exemptions and standard or itemized deductions from your AGI. Credits reduce this tax even further, possibly to zero. Thus, giving you back everything you paid in.
Also, (depending on circumstances) you may also qualify for the Additional Child Tax Credit and the EIC. The maximum EIC for one child is $2747.
If you have your income information, you can find a tax calculator that will estimate your possible refund. H & R Block or Turbo Tax has a calculator that's free to use.
2007-01-22 19:28:38 · answer #2 · answered by Celeste 6 · 0⤊ 0⤋
not as much as you spend.
If you itemize, and had no health insurance, and spent more than 8% of your income on the hospital and visits, etc, you can get some portion of that back.
The standard deduction is $3,300, but that is deducted from your taxable income, so it depends upon which tax bracket you are in. it may reduce the amount you have to pay by roughly $1,000. If you pay no taxes, you will get nothing "back".
If however you qualify for the Earned Income Tax Credit (EIC), you may actually get paid by the government.
Why the government will pay you to have kids, if you don't have enough to support yourself to begin with is somewhat perverse. It in effect rewards those for having kids without planning sufficient means to support them, and pays the stipend from the taxes of families and single people who ensured that they didn't parent a child they could not afford to raise. Just one little quirk out of thousands which make up our bizzare tax code that lets corporations pay less than the people sweeping their floors...
Hope this answers your question. Good luck with the little snapper!
2007-01-22 18:57:58 · answer #3 · answered by Truth be Told 3 · 0⤊ 0⤋
You have an additional dependent, which is worth about $3,000 off your adjusted gross income, plus you can take the child tax credit, which I believe is a $600 reduction in tax.
If you don't make very much money, this could qualify you for the Earned Income Tax Credit.
Actual cash amounts depend on your income. See http://www.turbotax.com
2007-01-22 18:49:18 · answer #4 · answered by John T 6 · 0⤊ 1⤋
You don't "get back" from having a child....
You are eligible for a child tax credit. It is about $2000 per child however, if you owe taxes you will not be seeing a check for 2K in the mail.
That is why the IRS doesn't constitue "get back" as income.
2007-01-22 18:50:08 · answer #5 · answered by mailjunkie123 3 · 0⤊ 2⤋