I have a question about when I file my taxes. O.K. First I been claiming my niece for the past 2 years and this year I only been working for about a month and been getting unemployment for half the year but I've been taking care of my niece because my sister is young and has no job and my niece father is a Loser, and with my jobs and even my little unemployment checks and been doing everything for her from clothes to diapers anything she needs. well the question is when I claim her I get a nice amount of money back but is that because I work most of the year. will it drop since I only work about 1 month this year and collected unemployment for the rest?
2007-09-10 13:46:06 · 4 answers · asked by chimia112 2 in Business & Finance ➔ Taxes ➔ United States
Your tax refund will change because your income is now from a smaller amount of wages, plus unemployment. You will not get the Earned Income Credit based on the unemployment.
If you worked one month, you will still get some EIC, but very little compared to last year. If your total income is more than about $12K you will get some tax relief from the Child Tax Credit, hopefully this will eliminate any tax owed on the unemployment benefits. But you will not get any Additional CTC.
If you have your income information, a tax preparer at any of the offices that are now open can estimate your tax refund for you.
2007-09-11 01:10:17 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
Yes that will make a difference. The nice amount you've been getting back is probably the earned income credit. Unemployment isn't earned income for the EIC calculation, so your EIC will only be based on your income from the time you worked.
But you are doing a good thing having her live with you and taking care of her.
2007-09-10 21:17:41 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The nice amount of money you are used to is called "Earned income credit" Notice how it starts out with "Earned" since you do not earn unemployment you will only get back a SMALL amount of money if any all all based on what you Earned income was, you will also get back what you paid in federal tax's for that month, sorry sister gotta get back to getting a real paycheck to get that real tax return.
2007-09-10 21:10:23 · answer #3 · answered by Tbenn 2 · 0⤊ 0⤋
You will probably qualify for earned income credit since you have worked for part of the year ... please go to www.irs.gov for definitive answer.
2007-09-10 20:55:25 · answer #4 · answered by Barbara E 4 · 0⤊ 1⤋