The Federal Tax Credits Blog

Archive for June, 2010

Question: can we claim sons girlfriends 2 kids who live with us for the child tax credit?

am filing joint with husband. We totally supported son, his girlfriend and their 1yr old baby , and also son’s girlfriends 2 boys from a previous marriage. We all lived together for 2009-my husband was the only employed in the house. irs said we can claim all 7 exemption, and our grandson qualifies for the child tax credit, but I don’t remember if they said that the other 2 boys qualified for the child tax credit. They did mention something about the additional child tax credit and said to fill out form 8812( I believe)
My sons girlfriend and her ex are not filing a return at all. They are not required to. Can we take the child tax credit for the boys too. Thank-you for your response.
Thank-you you guys for the great info.
everyone gave good answers, it was hard to choose best answer. I really felt that all the answers I recieved contributed to helping me figure this out.
so thanks.

Answer: Your son’s son can be claimed as grandchild, as per IRS he is entitled to EIC due to the relationship,
Your son’s girlfriend son, can be claimed as dependent if you supported him most of the year, but will not give you the EIC
Your son’s girl friend can be claimed as dependents too. I am sure she can not give any credit.
But having more numbers of exemptions in your return will reduce your taxable income, thus make your tax better. Non relatives will not give you EIC nor additional child tax credit.

A qualifying child is a child who is your…

Son, daughter, stepchild, foster child, brother, sister,
stepbrother, stepsister, or a descendant of any of them
(for example, your grandchild, niece, or nephew)

Winners and losers in N.J.’s budget

New Jersey’s newest state budget will hit property owners and low-wage workers, but save seniors from higher drug copayments and preserve Bergen County blue laws.

Seven Financial Vows for Marital Bliss (Financial Planning)

Question: Is now the time for me to refinance and consolidate by debt?

Here is the deal, i own a home in st.petersburg florida valued at around 200,000. I have owned the home for a little over 2 years now. The purchase price was 120,000. I pay the mortgage to the previous owner on a monthly basis of 689.00. It is a 30 year loan, at a fixed 6 % rate. In september, in order to keep up with my property and insurance taxes, i took out a home equity line of credit with bank of america. Right now, i have used about 6500.00 of the 25,000 limit(it is a 10 year HELOC). If you were in my position, what would you do?. Just keep paying on both these loans like i have been, or seek to refinance the entire amount, to pay off the previous owner, and the HELOC. Thank you for your time

Answer: I believe you are asking the wrong question. You need to ask can I afford this house. You had to borrow money to pay taxes and insurance. they are going to occur every year and most likely increase each year. It is mandatory to be setting aside money each month so when you get the tax and insurance bill you have the cash to pay them. If you would have financed through a conventional channel you would be required to pay that money into an escrow account monthly in the form of a higher house payment.

You need to immediately get on a budget setting aside that money in a separate checking account each month or you will eventually get swallowed up by debt. Cut your lifestyle a little and pay that HELOC off in the next year or two and start setting aside the money for taxes and insurance.

North Bay daycare operator faces jail

NORTH BAY — Some daycare workers relied on their wage subsidy to make mortgage payments or cover food bills, while others thought it would help with their own child-care expenses, a North Bay court heard Monday.[...]

Senate Session 2010-04-19 (15:56:28-16:47:53)

Tax Credit Deal Could Pay Off In Vegas

Now that the House has passed a bill to extend the availability of the homebuyer tax credit, Las Vegas families are closer to getting some relief as they shop the nations toughest housing market.

First Time Buyer Tax Credit Extended pending Obama’s Signature.

Question: Are Child Benefits and child tax credits the same?

My mum gets paid Child benefit every month but recently I found out she should be receiving child tax credits too, which is given weekly, it is under her name but my dad receives the money instead. What can she do about this?

Answer: Child Benefit is normally paid to the mother & is paid from when a child is born until they are 16 (19 if in full time education), this is paid whether the parents work or not. child tax credit is a Benefit which can be claimed by the working parent.

House rejects extension of unemployment benefits

With Republicans citing concerns about the growing national debt, the House rejected a bill today to extend unemployment benefits for people who have been out of work for long stretches.

PolicyCast: Economic Recovery and Unemployment Benefit Extension

Question: I NEED HELP please quick nahdah?

WELL HONDA WANTS THERE $$$ I HAVE BEEN IN & OUT OF JOBS FOR A YR I HAVE MADE A PYMT ON TIME WELL NOT ON TIME NOT 30 DAYS PST DUE NVR 60. I MOVED BACK TO OHIO AND GOT A UP FRONT SALES TAX ON A LEASE ON TOP OF MY NORMAL PYMT IT WAS 1100.00 DOLLARS I GOT HELP FOR 300.00 OF IT AND TO DAY THEY WANT 250.00. WHICH I DO NOT HAVE AND IF I DO NOT MAKE IT THEY WILL REPO WHAT DO I?? I GET PD WELL MY WIFE GETS PD ON THE 15TH BUT WE ARE IN A TON OF SHT THE AMNT THEY WNAT CAUGHT UP IS 1800.00 WHAT I WAS GOING TO DO WAS PAY 680.00 ON THE 15TH AND PAY LIKE 500.00 ON THE 31ST BUT THEY SAID NAHDAH WHAT TO DO I MEAN I HAVE NEVER HAD A CAR TOOK I HAD EXCELLENT Car credit so im now hell help.

Answer: Yep, sure does sound like you are in deep dodo. Your first mistake was getting behind in your payments. You should have contacted them as soon as you saw you were going to be late and explain to them your problem. They may have been sympathetic and let you slide for a month or two. But now you’ve been late without discussing it with them so they are not willing to negotiate. You can try to go to a bank and ask for a small loan. They may or may not approve you.
cp

New Virginia laws target job creation

Several new laws that go into effect this Thursday aim to turn Virginia’s economy around.

Earned Income Tax Credit 2010