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Just helped a young single mother input her tax information into an online IRS approved tax program (Tax Act).
She earned approx 10k with a withholding of about 800 dollars. The program is saying she will get a refund of over 5k. Is this even possible? If she takes the child off it shows her just getting back the 800 that was withheld.
Just helped a young single mother input her tax information into an online IRS approved tax program (Tax Act).
She earned approx 10k with a withholding of about 800 dollars. The program is saying she will get a refund of over 5k. Is this even possible? If she takes the child off it shows her just getting back the 800 that was withheld.
Yes, this is possible due to Earned Income Credit (max. $3250 with 1 child) and the Child Tax Credit (max $1000).
Yes its possible and if she is having trouble meeting her living expenses on the $10,000 she can adjust her W-4 and get that money each month instead of waiting for the refund each year.
Yes its possible and if she is having trouble meeting her living expenses on the $10,000 she can adjust her W-4 and get that money each month instead of waiting for the refund each year.
True, but remember this would only net an additional $800, based on last year's witholding. The balance of the refund is tax credits, which you don't get until you file your taxes.
Yes its possible and if she is having trouble meeting her living expenses on the $10,000 she can adjust her W-4 and get that money each month instead of waiting for the refund each year.
FICA is most of the withholding, so that won't do anything much in that specific case. They're basically taking out <$100 for income taxes, if that. Probably none.
They're basically taking out <$100 for income taxes, if that. Probably none.
She had $800 in federal income tax witheld.
Quote:
Originally Posted by jazzy jeff
Just helped a young single mother input her tax information into an online IRS approved tax program (Tax Act).
She earned approx 10k with a withholding of about 800 dollars. The program is saying she will get a refund of over 5k. Is this even possible? If she takes the child off it shows her just getting back the 800 that was withheld.
Maybe she should use a tax preparer that knows how the tax system works
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