Thumbs_Up
March 8th, 2009, 10:45 pm
For those of you who have received wonderful letters from your local senators telling you how your going to get a $2500.00 college break for your kids along with other goodies...please look beyond the sound good bites...
From Forbes magazine (Outfront, Taxes) see Page 32 (March 16,2009) article entitled "This Break's not for you" ... please notice the following
" Take an example of a single mother with an adjusted gross income of $75,000. She claims the standard deduction and has one highschooler and two kids in college. Under the stimulus package ,she'll have her 2009 federal income tax bill chopped in to $1,465 from $7,865 thanks to two $2500.00 college credits, a 400.00 workers stimulus credit and a $1,000.00 child credit."
So what's the Problem??? reality! She needs to take a second job still to make ends meet and here is where the next part of the article not only effects her but many working couples!!!!
"But if she takes a second Job to help pay her college bills and her AGI raises to $90,000 she gets NO college credits and only $100.00 of the workers credit and $250.00 of the child credit for a total tax bill of $11,265. That makes the tax rate on the $15,000 of extra earnings 65%- not counting the the 7.65% employee share of social security and medicare or any state and local income tax".
Be Sure to remember this in 2010 when your guy is up for re-election ...but I'm positive your accountant will painfully remind you! :boohoo:
From Forbes magazine (Outfront, Taxes) see Page 32 (March 16,2009) article entitled "This Break's not for you" ... please notice the following
" Take an example of a single mother with an adjusted gross income of $75,000. She claims the standard deduction and has one highschooler and two kids in college. Under the stimulus package ,she'll have her 2009 federal income tax bill chopped in to $1,465 from $7,865 thanks to two $2500.00 college credits, a 400.00 workers stimulus credit and a $1,000.00 child credit."
So what's the Problem??? reality! She needs to take a second job still to make ends meet and here is where the next part of the article not only effects her but many working couples!!!!
"But if she takes a second Job to help pay her college bills and her AGI raises to $90,000 she gets NO college credits and only $100.00 of the workers credit and $250.00 of the child credit for a total tax bill of $11,265. That makes the tax rate on the $15,000 of extra earnings 65%- not counting the the 7.65% employee share of social security and medicare or any state and local income tax".
Be Sure to remember this in 2010 when your guy is up for re-election ...but I'm positive your accountant will painfully remind you! :boohoo: