Earned Income Tax Credit...Is It Fair Or A Waste Of Money?

Question

My neighbor is a breeder. He has five kids and every year he gets a huge tax refund from the Earned Income Tax Credit. Within one week of the new year he already has his refund and all of a sudden he is ghetto rich. He buy's wheels & tires, quad & mini motorcycles...nothing really necessary. Why should someone who pays no taxes get a $ 6,000.00 refund? We pay all year and still owe at tax time...plus were trying to put a kid through college.
I wanna be ghetto rich!!!!

Answer 1

It's a waste of money. They should cap income tax refunds so you cannot get any more than what you put in at the most. My wife's sisters are the same way. It makes me sick to hear them talking about their 4 and 5 thousand dollar refunds when they probably only pay in half that. They don't use their refunds wisely, either.

Answer 2

Overall, I think the EIC is a good program, although I have no doubts that it, like any other good program, is abused sometimes.

The most your neighbor could get from the EIC is $4536, and then only if his income is between $11,300 and $16,000. I know, that's still a lot of money. And if he gets his refund within a week of the new year, he's paying H&R or somebody like that a lot of money to get a loan against his refund - IRS doesn't have any out that fast.

That said - is his use of the EIC money something I think taxpayers should be paying for? No. Do most of the people who get the EIC do this kind of thing? I doubt it.

Answer 3

Overall I think EIC is a good thing, but with every thing there are folks out there who abuse the system. Just think this guy will have nothing left in a few days and he still has to feed and clothe those kids all year long.

Answer 4

The earned income credit maxes out at 2 kids. The max for it with 2 kids this year is aroudn $4500 I think although not positive.
But, no it;s not a waste.

Answer 5

If you want to get more money back you have to pay more during the year. For instance, check married but tax at single rate and claim one all year. Thats how people get money back usually. Or you can have some more kids. Dont be a hater!

Answer 6

Money is just like garbage, if it's a waste spending fevorusly, then it's a waste sitting fearfully of the uncertain, the vague, the dark. Have courage to think without solving the enquiring problem .
Other are mine, what I do is part of the movie. He who is strong don't fear the stronger, only fear of certainty

Answer 7

To make you feel better. Those type of spenders usually never save their money. So when they are 50 with no kids at home to use for tax purposes, they are flat broke and have to work til they die.

At least you know the value of saving money, so you probably only have to work if you really want to at that age.

Answer 8

The gov has already seen the error of their ways and told the lil man he can now only claim 2 children ...no matter how many they have. If you want eic u can get it for up to 2 children for as long as they are in school.

Kinda sounds like someone is starting to think like the gov of china. hummm

:)...........Helives!

Answer 9

The tax code does benefit those at the extreme edges while doing little or nothing for the middle class.

Answer 10

Hey, it's the law, so you can't fault him for taking advantage of it. I'm one of the payers, too, but only Congress can do something about changing the tax code (I think). Write to your reps and sens and complain to them. I don't think the folks who enacted it intended for people to use it to by crap, but that's seems to be just the way it goes . . . .