2007-09-12 22:09:44 · 5 answers · asked by lito 1 in Business & Finance ➔ Taxes ➔ United States
Assuming that your kids, or at least two of them, are under 17 so you can claim the child tax credit for them, you shouldn't owe any federal income taxes (so 10% tax bracket before credits, zero after credits), And you should be eligible for an earned income credit of around $700. So if you have anything withheld for federal income tax, you should get it all back, plus the $700 or so for EIC.
2007-09-13 17:58:47 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
This is assuming you have no other deductions or credits, and your children are under 17.
Income: $35,000
Less
standard deduction: $10,700
five exemptions: $17,000
Taxable income: $7,300
Tax: about $730
Credits:
Child tax credit: $730
Tax: 0
Tax bracket: 10%, but reduced to zero by credits
You will also get an Earned Income Credit of about $300, plus an Additional Child Tax Credit of about $2200.
So you will get a refund of all your withholding, plus as much as an additional $2500 of refundable credits.
2007-09-13 10:34:34 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
Hey bostonianinmo--You forgot to include the child tax credit if the children are under 17--leaving a 0 tax liability. So, all withholdings for federal plus the earned income tax credit will be sent to the taxpayer. And bostonianinmo--you are right when you say that taxes are really not that high!
2007-09-13 08:20:44 · answer #3 · answered by IRENE THE BOOKIE 3 · 0⤊ 0⤋
10%
You get a standard deduction of $10,700 plus 5 exemptions at $3,400 each. That adds up to $27,700 that doesn't get taxed at all. That leaves you with about $7,300 in taxable income. For a married couple filing a joint return, that puts you in the 10% tax bracket. Your tax would be about $730. As a percentage of your gross income, you are paying a shade over 2% in Federal Income Tax.
But, hold on, it gets better! You qualify for the EIC. For an income of $35,000 that would reduce your taxes by $700. That leaves you with a Federal tax liability of $30 or about .1% of your gross income. One-tenth of one percent! Who says US income taxes are too high??
2007-09-13 05:49:28 · answer #4 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Tax laws are different in different countries. Please clarify as to where you are staying to enable me or someone to guide you.
2007-09-13 05:22:13 · answer #5 · answered by Anonymous · 0⤊ 1⤋