The Federal Tax Credits Blog

Posts Tagged ‘working tax credit savings limit’

Question: How should I attack my credit cards with my upcoming tax refund?

Me and the wife are expecting an $8000 tax refund check. We have two credit cards that are both pretty close to being maxed out. We would like to use our refund to pay the credit cards down or off, but we also would like to put a little of it away in savings as an emergency fund.

CC#1/7500 Limit/6700 Balance/12.9%

CC#2/6000 Limit/5300 Balance/13.9%

Is it better for us to pay off CC#2 completely, then with the remaining money, put some towards CC#1 and then some in savings? Or, should we pay both cards down to about $3000 or so, then put a little in savings?

Thanks to all that answer.

Answer: pay credit card #2 off completely and a little towards credit card #1 and save the rest. The reason that I say this is:

Just paying them both down to $3000 is just setting yourself up to be back in the situation that you are in now.

By paying off CC#2 you will save money in interest and have one less payment per month. Then paying down the other one is a good choice, but be sure that you have enough for the emergency fund. Another thing to think about is what you are going to do with the money that WAS going to CC#2, now that you have a little extra money per month. I would suggest getting your emergency fund to the amount that you want it to be or paying extra on the other card to pay it off quicker.

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Question: Does having savings effect the amount of child tax credit you get?

I currently receive CTC but will be receiving some monies due to a death of a family member.

Will this effect the amount I receive in CTC

Thank you

Answer: I don’t believe its means tested it is to do with the amount of hours you work.

New buyer tax credit deadline Friday

The Friday deadline for first-time buyers to get an $8,000 tax credit when purchasing a home has given a recent boost to Jacksonville’s housing market. And local real estate agents are not worried business will dry up when the deadline passes:…

Tax Credit Reform means savings, more accountability