Tax ? - what is exemption for child born in 2008? thx

wearewinelovers · February 2009

nft

caymanbride · February 2009

I think 3500

bnsrlb15 · February 2009

what does that mean?

Jackie612 · February 2009

You get a credit for $3500, $1000 and $300 for the stimulus

Myheart1297 · February 2009

is that $3500 back along with your refund?

annereed · February 2009

What? im confused too

soon2Bmrspower · February 2009

Jackie612:
You get a credit for $3500, $1000 and $300 for the stimulus

Do you know if the $300 from last year's stimulus comes in the form of a separate check? It didn't seem to be included in our regular tax refund, although it did come up and specifically mention that we would be getting it.

lvisser · February 2009

I am also confused now... is it 3500 PLUS 1000 PLUS 300?

So I would get back say, 1000 normailly, I will get 5800 back cause of DD?

MrsTotty · February 2009

WTF is Kateums when you need her??

weebaby · February 2009

MrsTotty:
WTF is Kateums when you need her??

i emailed her asking WTF

wearewinelovers · February 2009

I'm pretty sure the $3,500 answer was what I was looking for but now I'm curious about the other stimulus check that DD should get for $300....and I don't understand the $1,000.00 either. We got $1,500.00 stemulus

wearewinelovers · February 2009

sorry about the mispelling. had to rescue Raegan for a second

Temp174496125006552 · February 2009

marking for later.

Sept_Bride'07 · February 2009

is there another stimulus check this year? dh hasn't gotten his w2's yet, so we haven't started doing ours.

Jettaky · February 2009

sfl

soon2Bmrspower · February 2009

Sept_Bride'07:
is there another stimulus check this year? dh hasn't gotten his w2's yet, so we haven't started doing ours.

The stimulus that was given last year was based on your 2006 tax returns (at which time we didn't have our little ones). Therefore, our rebate was $1,200 for a couple. However, once you do your taxes this year and the IRS sees that you had a baby last year, then you get the additional $300 that those with a child got last year. Make sense? Hope so!

Abby'sMommy · February 2009

Ok, we already did our taxes and this is what we got:

Federal income tax withheld: $895.00

Earned income credit (because of DD) : $2552.00

Additional child tax credit (also because of DD) : $1000.00

Recovery rebate credit (this is the remaining of your stimulus check, since if your child was born in 2008, they did not figure it in your original stimulus) : $62.00

That's a total of $4509.00, and that is our total refund. It just all depends on how much you made, how much you put in, and how much of a stimulus you already received. HTH

Mrs Manners · February 2009

Is there an income cut-off where you aren't eligible for the child credit like there was for the stimulus?

Abby'sMommy · February 2009

Yes, the stimulus was for 2008, and since you now have a DC, you are a Family status, not a Couple status. Also, everything comes all in one check, no seperate checks. Which is great.

Abby'sMommy · February 2009

Mrs Manners:
Is there an income cut-off where you aren't eligible for the child credit like there was for the stimulus?

I don't believe so, but there is some sort of cut off for amount of children. My MIL still have 8 children she can claim (yes, she had 10 kids), but her total refund was about $6500, so you won't get $1000/child after a certain amount.

gatogrrl · February 2009

I am so far from a tax expert, but... I think the $3500 is a deduction from your income. So, if you make $40K, you deduct $3,500 from that number and are left with $36,500 for income. You pay whatever the tax is for $36.5K instead of $40K.

The $300 is a rebate per child, which comes on top of your refund.

Abby'sMommy · February 2009

gatogrrl:

The $300 is a rebate per child, which comes on top of your refund.

Though, not everyone gets the full $300. We only got $62.

gatogrrl · February 2009

There is a cutoff for the earned income credit. I don't know what it is, but our family doesn't get it. I think it's somewhere around $30K for a family with one child.

Califlorida · February 2009

there is a cutoff. i think it's around $110,000. so if you make "too much" you're sol. f'ing stupid.

gatogrrl · February 2009

Abby'sMommy:
gatogrrl:

The $300 is a rebate per child, which comes on top of your refund.

Though, not everyone gets the full $300. We only got $62.

Really? Darn. Do you know how that is determined?

Sept_Bride'07 · February 2009

soon2Bmrspower:

Sept_Bride'07:
is there another stimulus check this year? dh hasn't gotten his w2's yet, so we haven't started doing ours.

The stimulus that was given last year was based on your 2006 tax returns (at which time we didn't have our little ones). Therefore, our rebate was $1,200 for a couple. However, once you do your taxes this year and the IRS sees that you had a baby last year, then you get the additional $300 that those with a child got last year. Make sense? Hope so!

yes, it does. ty very much!

Soter1 · February 2009

gatogrrl:

I am so far from a tax expert, but... I think the $3500 is a deduction from your income. So, if you make $40K, you deduct $3,500 from that number and are left with $36,500 for income. You pay whatever the tax is for $36.5K instead of $40K.

The $300 is a rebate per child, which comes on top of your refund.

This is correct. The $3500 is in addition to the other amount you usually get to deduct off of your adjusted gross income, then you find that new number on the chart and it can help lower your tax bracket. It isn't a direct refund of that money.

Abby'sMommy · February 2009

gatogrrl:
Abby'sMommy:
gatogrrl:

The $300 is a rebate per child, which comes on top of your refund.

Though, not everyone gets the full $300. We only got $62.

Really? Darn. Do you know how that is determined?

The original amount was towards your 2008 taxes, but based by how much you made in 2007, on how much they think you would make in 2008. With that being said, I made much more in 2007 than in 2008, thats why I didn't get the full amount. Since my DD was born, I have not worked for a 'real' paycheck, just for my dad, so it looks like I made nothing this year. So their estimate would have been high, since I made less in 2008 than in 2007, therefore, I only got $62.

Califlorida · February 2009

so what is the consensus? is there an income cutoff or not? my cpa (aka my FIL, lol) seemed to think there was.

*blondiem* · February 2009

I am a CPA, so let me try and explain the best I know how:

The $3500 is the exemption amount for a dependent. That figure, combined with the exemption for you and your husband (and what your filing status is) makes up the "standard deduction." If you itemize, and your itemized deductions are greater than your standard deduction, you take the itemized deductions instead, and the standard doesn't apply. (Itemized deductions are things like mortgage interest, real estate taxes, student loan interest, etc etc)That amount then gets subtracted from your adjusted gross income, and that figure is what is taxed. That is the very simplistic version. This is how you arrive at your taxable income.

Re: The rebate credit on the stimulus: The stimulus payments that we all received were an advance on your 2008 taxes. Instead of giving us that money at the end of the year in 2008 on our tax returns, they gave it to us early to stimulate the economy. Depending on your 2007 filing status, (I believe this is how it worked) you were given either $600 or $1200, or maybe you didn't get any at all. Well, say you worked in 2008, but you didn't in 2007. You would not have gotten the check in the spring with the rest of us, but you would get a rebate credit on your 2008 return. Same goes if you had a baby. We had our babies before 12/31/08, so they are now giving you that $300 (that you would have received in the spring) as a "rebate credit" on your 08' return.

The $1000 is the Child Tax Credit.

HTH. I tend to ramble, and usually I can't explain things very well, so I hope this made sense!!

augustjam16 · February 2009

blondiem...that made sense. Thanks!

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