historically accurate Posted February 4, 2018 Share Posted February 4, 2018 Ok so, let me get this straight- people who pay zero taxes get money? Well, if you're filling out a 1040, it means that you probably have some tax due (line 44 on a 1040). Non-refundable credits are subtracted from that, and they can bring the tax due to zero (If non-refundable credits equal more than tax due, that overage amount of credit is negated). Refundable credits are then subtracted from any remaining tax due (if any), and the total tax due can be brought negative, meaning a refund due. The child tax credit and the earned income credit are the two big refundable ones that I am familiar with. 3 Quote Link to comment Share on other sites More sharing options...
Hilltopmom Posted February 4, 2018 Share Posted February 4, 2018 (edited) I’m curious how Alaska works- I’m always hearing about how they provide money to homeschooling families for educational uses... right? I think it’s not a tax credit though, I think they just get money directly from their district? Edited February 4, 2018 by Hilltopmom 1 Quote Link to comment Share on other sites More sharing options...
homemommy83 Posted February 4, 2018 Author Share Posted February 4, 2018 I’m curious how Alaska works- I’m always hearing about how they provide money to homeschooling families for educational uses... right? I think it’s not a tax credit though, I think they just get money directly from their district This would be so cool. Quote Link to comment Share on other sites More sharing options...
maize Posted February 5, 2018 Share Posted February 5, 2018 (edited) Yeah, have you ever heard of the Earned Income Tax Credit? https://www.taxact.com/tax-information/about-your-taxes/earned-income-credit It's economic stimulus money because corporations don't pay some people, who are working full-time, enough to secure housing, food, child care, and heating. Also, these people do still pay taxes--social security tax, Medicare tax, sales tax, state tax, property tax (if renters that is included in the rent), transportation tax... Federal income tax is only one of the many taxes we pay. Edited February 5, 2018 by maize 1 Quote Link to comment Share on other sites More sharing options...
Tsuga Posted February 5, 2018 Share Posted February 5, 2018 Also, these people do still pay taxes--social security tax, Medicare tax, sales tax, property tax (of renters that is included in the rent), transportation tax... Income tax is only one of the many taxes we pay. Fair enough, though I wouldn't describe SS and Medicare as taxes but as social insurance fees. We only have sales tax in my area. Everything else like transportation is via that sales tax, or if you are a property owner, through property tax. Quote Link to comment Share on other sites More sharing options...
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