"Harlan Lunsford" <lunstax[at]bellsouth.net> wrote
- quote -




Yeah, but think of all the "good" help you'll get.



--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
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Paul Thomas, CPA wrote:
- quote -

Then suppose my corporation is the small business putting her to work?
(Forget for a moment she says she will never work for me.)

Cost to my corporation will be her salary plus another 7.65%, plus SUTA
and FUTA (combined 1.6%), just so she can get a credit for her 6.2% up
t0 $500? Don't need to do any more math.

ChEAr$,
Harlan Lunsford, EA n LA

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"Harlan Lunsford" <lunstax[at]bellsouth.net> wrote
- quote -







"I love the smell of a tax credit in the morning."
A line never used by Francis Ford Coppola in any movie as far as I can tell.




You see Harlan, there's time to get her a job so she has some earned income
in each of the years at issue.

You'd have to run the numbers to see if it's doable, but you might have a
small business owner putting dear ol' mom and dad on payroll for the tax
credits.

"Oh the horrors."
Wait, that line was used.





--
Paul A. Thomas, CPA
Watkinsville, Georgia

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Reggie wrote:
- quote -

Well.........I for one am glad I'm paying taxes.

ChEAr$,
Harlan Lunsford, EA n LA

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adwagner[at]hotmail.com wrote:
- quote -

explain to my (retired and not working) wife why she won't get any money.

ChEAr$,
Harlan Lunsford, EA n LA

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<adwagner[at]hotmail.com> wrote in message
news:092b21ad-eb9a-468b-88c6-5dd0d105d18d[at]r37g2000prr.googlegroups.com...
- quote -


It helps to obfuscate the nature of all this "tax cut" stuff. it is really
welfare in disguise.

I suppose, also, that the phase out means that with enough income, you don't
even get the $1,000. With enough income, you just get to pay taxes, not get
any of the tax relief.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

adwagner[at]hotmail.com wrote:
- quote -

or $500. The 6.2% represents the rate of FICA tax. The amount
is a refundable tax credit. And... like most tax credits, it
phases out if your income gets too high.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

"“Making Work Pay” tax credit. The bill would cut taxes for more than
95% of working families in the United States. For 2009 and 2010, the
bill would provide a refundable tax credit of up to $500 for working
individuals and $1,000 for working families. This tax credit would be
calculated at a rate of 6.2% of earned income, and would phase out for
taxpayers with adjusted gross income in excess of $75,000 ($150,000
for married couples filing jointly). Taxpayers can receive this
benefit through a reduction in the amount of income tax that is
withheld from their paychecks, or through claiming the credit on their
tax returns."

Maybe I am missing something here. It says you get a tax credit of
6.2%. If you earn exactly $150,000, that is over $9,000 in credit.
Yet the amount is apparently capped at $1000. If they are going to
offer a rate of 6.2% and cap the credit at $1000, why does the phase
out begin at $150,000 of earned income? Maybe that is the way they
want it, but it sure seems odd to me.

Best wishes.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Alan" <sfcnm-mtm[at]yahoo.com> wrote in message
news:YP7gl.19767$ZP4.7575[at]nlpi067.nbdc.sbc.com...
- quote -

all that money, and nothing for me!

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

For those of you even care about tax legislation that is not
final... the first link is the summary from Ways & Means and the
second link is the text. See Division B, Tax Provisions in the
text of HR 1.

http://waysandmeans.house.gov/media/pdf/110/taxsum.pdf
http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.1:

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >