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Old 04-02-2013, 08:33 AM   #15
cbreeding
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Join Date: Oct 2010
Posts: 1,032
Re: Taxes for large familes

Quote:
Originally Posted by Sarah-B View Post
So here is another question

What if you are a single mom of 3 kids and do not work and have $0 income besides child support ($10,000 per year). (You eat off of food stamps and wic) would she get a refund for the 3 kids?

I know a lady who has this situation I have described. And dh says if you don't work you don't get $ back.
He also says if a mom were single (say she has 3 kids) and made $20,000 in a year. If she had $4,000 withheld from her check she is only eligible to receive $4,000 back although she has 3 children. I think she would get $3,300 per child. What are your thoughts on these 2 situations I have described?

Thanks

Yes it is still possible to get money back. I volunteer doing low-income/no-income tax returns, and see it all the time. Our state also has some refundable credits. Often the money received (those that I have prepared)is not a lot but it does help. The child tax credit is refundable so you will receive the amount over your tax liability even if it is $0. Again it is phased out if your income is above a certain limit

Given the two scenarios above.

First: Most likely she would get the refundable child tax credit. $3000

Second: Most likely she would qualify for the Earned Income Credit and the child tax credit. She would also get back the $4000 in withholding. At the very least her refund would be $7000.

Last edited by cbreeding; 04-02-2013 at 08:38 AM.
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