how much do kids affect taxes?

kjlrs

in terms of the number of dependants you claim, that is? we aren't eligible for the child tax credit but will be having another child this year. i'm trying to figure out how many allowances i should have. this year we ended up owing a little bit and i'm hoping that having another child will take that down so that we don't owe for next year but am unsure.

 

is there a calculation i can do? is it equivalent of a certain amount of $$ deducted from your income?

JOEBunny

It is pretty much a big 0 for us...

https://www.irs.gov/publications/p972/ar02.html#en_US_publink100012080

DaisyAdair

DH claims single and 0 and we got a $500. refund this year.

Hoo-freakin'-Ray!!!!

We also don't get the tax credit though.  If we did, we would have gotten $2,500 back!  

kjlrs

JOEBunny:

It is pretty much a big 0 for us...

https://www.irs.gov/publications/p972/ar02.html#en_US_publink100012080

 

yeah, we don't get the child tax credit either but i think everybody gets something for the number of dependants they can claim. the child tax credit is just extra.

kjlrs

answered my own question, finally:

 

Exemption amount. The amount you can deduct

for each exemption has increased from

$3,400 in 2007 to $3,500 in 2008.

 

Exemption phaseout. You lose part of the benefit of your exemptions if your adjusted gross income is above a certain amount. For 2008, the phaseout begins at $119,975 for married persons filing separately; $159,950 for single individuals; $199,950 for heads of household; and $239,950 for married persons filing jointly or qualifying widow(ers). However, in 2008, you can lose no more than 1/3 of the amount of your exemptions. In other words, each exemption cannot be reduced to less than $2,333.

august0605bride

MH claimed 2 and we owe. ?No child(ren) tax credit(s) either. ?Next year, he's back to claiming 1 ( I never want a refund, but I also hate writing a big check in April, so we think claiming 1 should make it all pretty even )

*sparky*

I get no tax benefit for having a DC thanks to the tax laws.  If you go to www.irs.gov there is a place where you can estimate your taxes and figure out how much to have withheld.