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I know that there are so many variables to consider in this question, but I would like to know a general figure about what to expect. I make less than $21,000/year. I hope to get an Earned Income Credit, as well as deductions for my two children and a home office (room used exclusively for my homebased business). I'm trying to work from home, so I can afford to continue giving my son homebased autism therapy. Do you think my tax refund will be around $3,000? If so, I can use that money each year to prepay a year's worth of rent in a mobile home so that I can continue what I'm doing. Not the typical way of doing things, I know, but I'm just trying to avoid putting my son in a public school autism class, where he wouldn't receive nearly enough individualized attention.

2007-10-05 05:58:49 · 2 answers · asked by merebear83 2 in Business & Finance Taxes United States

2 answers

Last year my tax refund was $5,800 (Federal & State combined). My husband was in the military (E-4) he made around $25,000. We have one child and I wasn't working. I am sure you will get around that or more; since you have one more child and your business.

2007-10-05 06:12:36 · answer #1 · answered by AnGeL 2 · 0 2

Average wouldn't mean anything really, since some people owe and some get thousands back. But if you have two kids and make $21,000, the Earned Income Credit would give you around $3648 if you're married, $3227 if you aren't.

If you are married, you shouldn't owe any income tax - if you're not, you might owe $200-300. If you had more deducted from your paycheck than that, you'd also get the extra back as a refund with the EIC money. If you aren't an employee, but are in business for yourself and that's where the $21,000 is coming from, then you'll also owe self-employment tax which would be a couple thousand dollars and eat up a lot of the EIC if you haven't made estimated payments.

If you want to email me with more detail on your personal situation and income, I can probably give you a better answer. Or post more info on this forum.

Good luck - sounds like you've got your hands full.

2007-10-05 06:22:46 · answer #2 · answered by Judy 7 · 1 1

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