A friend of mine said his tax preparer got him $300 extra for bein between 25 and 35 and no kids is this possible and how did he do it
2007-02-26 00:22:32 · 7 answers · asked by dniel c 2 in Business & Finance ➔ Taxes ➔ United States
Your friends income apparently allowed him to claim some of the Earned Income Credit
2007-02-26 00:30:13 · answer #1 · answered by Anonymous · 3⤊ 0⤋
In my experience it also has been dangerous to compare one tax refund to another, because the situations are rarely the same. Usually the wages or the withholding are different just to name a few reasons why the refund he received was different than yours.
With out knowing anything about your friends situation I can think of two circumstances that would explain part of his refund. First would be the Earned Income Credit if he made between $1 and 12,120 that would give him a maximum of $412, second would be if he contributed to a retirement plan and his income is under $25,000 he could qualify for the Retirement Savers Credit which is a maximum of $1,000.
As a word of caution when using any tax preparer: Anytime you have a question about a line item the preparer should be able to site a source that would show why that deduction is legal. Do not accept that he or she has been in the business for X number of years and just knows what they are doing. The laws are change every year so what is good one year may not be good the next.
2007-02-26 09:38:51 · answer #2 · answered by jks_mi 3 · 0⤊ 2⤋
He misunderstood what the tax preparer said.
The only thing close is that if his income met the limits for getting EIC with no kids, he might have gotten $300 for EIC. To get EIC with no kids, he'd have to be between 25 and 64, and have income under around $12K for the year. Even within those rules, the amount of the EIC varies depending on income - with income of about $4000 or about $8200, the EIC would be around $300.
2007-02-26 11:44:35 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
If his income was very low and he was between ages 25 and 64 he may have qualified for the Earned Income Tax Credit.
2007-02-26 08:34:03 · answer #4 · answered by Bostonian In MO 7 · 2⤊ 0⤋
There is no such deduction/credit.
That doesn't mean that the end tax your friend paid was wrong... it just means that you or he misunderstood the reasoning for the end result.
2007-02-26 08:26:40 · answer #5 · answered by Anonymous · 0⤊ 3⤋
this is not possible in my opinion .
2007-02-26 08:41:29 · answer #6 · answered by xeibeg 5 · 0⤊ 3⤋
No such thing.
2007-02-26 08:26:06 · answer #7 · answered by Anonymous · 0⤊ 4⤋