Reset Password
Reset Link Sent
| Blogs > > My Blog |
|
Member Deleted Post This post has been deleted by |
|||
|
well it actually even worse than that. Income level and refundable additional child tax credit makes it so you need to have sufficient income to get the full credit for one child that minimum is about 8,000 a year. It rises with each additional child. what ends being the problem with refundable credits is the tax person lies about their income to maximize their refund. Most of the time that lie is to increase the amount of income. this becomes a real issue for the IRS, as historically the IRS catches people who under report their income not over report. There is very few mechanisms to catch over reporting of income. So people try to get away with reporting at least 15,000.00 of income when they have none. What has happens is that traditional very low and non-income people who have never filed, now do so to get refundable credits, not only do they report their low income, but for the most part lie. It's not just illegals with ITIN's....
| ||
|
It should be of note that Obama, never authorized refundable credits. that was done before him. It also should be of note that the republicans, have suggested healthcare cost refunds also fall under refundable credits I don't care about entitlements, give them to people if it be so decided, but I am against refundable credits. The IRS is not the place to give them. Believe it or not, the IRS takes your word for it, this year from around January 20th til September. that is unless you're total idiot, and do something totally stupid that the computer can catch you on.. In September the computers will have the necessary information to confirm your return. It's not until then you get on the hook. Increasing income is not a computer validation. the computer must let it go, Only an individual review and audit can catch you. One that is NOT cost effective for the IRS, with the budget constraints the Fed gov't imposes.. You want to stop it....Take it away from the IRS, or give the IRS enough funding to catch everybody.
| ||
|
In my mind there only been one refundable credit, that worked.. That was one was either at the end of Bush or the beginning of Obama. That was the first time home buyers refundable credit. It worked because it had to be verifiable and was only for the year given. it was not renewable, like additional child credit or earned income credit., As the years go by these refundable get more and more abused.
|
×
×