So many hard working people ending up owing at Tax time even tho they have worked and paid into the Tax system but people on social assistance who haven't worked a day or paid into the system get money back Why?
2007-03-05 15:23:09 · 4 answers · asked by cottontop 1 in Business & Finance ➔ Taxes ➔ United Kingdom
People who didn't work at all do NOT get money back at tax time. If they collected welfare, but also worked sometime during the year, then they might.
The only way to get money back at tax time without working at all during the year is to file a fraudulent return. If that's done, with a little luck the IRS will catch it and the person will be penalized.
2007-03-06 05:03:37 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
People that solely depend on welfare benefits, cannot receive a refund. Welfare benefits is not considered taxable income. If they are, they're committing fraud. The majority of tax credits are based on earned income. EIC is a big one. You must have earned income in order to get this credit.
There are some that do have jobs (low paying) and welfare. Thus, giving them the opportunity to file and get back a nice chunk of change.
Again, if these people have never had a job and ONLY get welfare as income, they cannot file.
2007-03-05 16:05:39 · answer #2 · answered by Celeste 6 · 1⤊ 0⤋
Republicans.
2007-03-05 15:31:07 · answer #3 · answered by Robert B 1 · 0⤊ 0⤋
Even the poorest of poor get taxed!
2007-03-05 15:55:48 · answer #4 · answered by oldster 5 · 0⤊ 1⤋