Posted: 2/16/2009 4:38:24 AM EDT
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I have a guy that works for me that made 38,000 dollars last year and only paid in less than 4,000 in fed taxes and he gets back $8,800.
How in the hell is that possible? His wife does not work. He has 4 kids. one is autistic and he gets state check for that kid already. |
| I actually don't see a problem with this. I'm guessing the wife stays at home and cares for the kids? It should be possible for one parent to work and support a family while the other stays at home. Getting back $8,800 seems like a lot, but you think about how much it costs for clothing, school supplies, meds etc etc for 4 kids..... |
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It is called embedded taxes.
Every dollar you spend is taxed when you make it, and again when you spend it. The sales tax, the gas tax getting it to market, the income tax that is included in the pay of everyone who makes a living touching the product from concept to final sale, etc. Every time the product changes hands, the .gov gets a slice of the pie. That cost is past down the line, and included in the final 'sticker price'. Think of a gallon of milk. I don't have a clue what the current cost of producing a gallon is, but consider all that goes into it. Farmer milks his cows and sells the milk. He pays for the vet to keep them healthy. The vet charges him, and pays income tax. He also pays fuel tax to come over and inseminate the cows. That is part of his bill... the farmer passes that part along to the milk co-op. They have to pay the milk truck driver his salary, income tax and SS/medicaid, and fuel tax... they pass this cost along to the bottling company. The bottling company has to pay a repair man to come over and fix the pasteurizing machine. The repair man (yup... paying income taxes, and fuel tax) has to order a part... it comes by UPS... from a factor in Indiana.... you get the picture. |
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Quoted:
I have a guy that works for me that made 38,000 dollars last year and only paid in less than 4,000 in fed taxes and he gets back $8,800. How in the hell is that possible? His wife does not work. He has 4 kids. one is autistic and he gets state check for that kid already. I hate to say it, but this has been going on since January 31st, 1940, at least. 
Ida May Fuller (September 6, 1874 – January 1975) was the first American citizen to receive a monthly benefit Social Security check. She received the check, amounting to $22.54, on January 31, 1940.
Fuller was born on a farm outside Ludlow, Vermont. She spent most of her life in Ludlow, working as a legal secretary, but lived with her niece in Brattleboro, Vermont during her last eight years. She retired in 1939, having paid just three years of payroll taxes. She received monthly Social Security checks until her death in 1975 at age 100. By the time of her death, Fuller had collected $22,888.92 from Social Security monthly benefits, compared to her contributions of $24.75 to the system. http://en.wikipedia.org/wiki/Ida_May_Fuller |
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If he made $38,000 gross, after his deduction for married-filing joint and I am assuming a shitton of medical expenses and home mortgage interest, he's itemizing his deductions. I'm guessing his taxable income is less than $2-3K. His federal tax is going to be zero. Then he's going to get the additional tax credits for his 2 children (along with the one being disabled, etc..), then he's going to get the Earned Income Credit.
Basically, he's getting the $4K he paid in, $2k for the children, and probably $2K for the earned income credit. Just a guess, but based on the info in the OP, that's how I'd be preparing his tax return. |
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Quoted:
I actually don't see a problem with this. I'm guessing the wife stays at home and cares for the kids? It should be possible for one parent to work and support a family while the other stays at home. Getting back $8,800 seems like a lot, but you think about how much it costs for clothing, school supplies, meds etc etc for 4 kids..... I dont think I have to pay for his kids clothing, school supplies, meds, etc for 4 kids |
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Quoted:
Quoted:
I actually don't see a problem with this. I'm guessing the wife stays at home and cares for the kids? It should be possible for one parent to work and support a family while the other stays at home. Getting back $8,800 seems like a lot, but you think about how much it costs for clothing, school supplies, meds etc etc for 4 kids..... I dont think I have to pay for his kids clothing, school supplies, meds, etc for 4 kids So, then don't. |
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Quoted:
does he own a home as well? kids are a gold mine as far as taxes go. but a bottomless pit as far as personal finances. especially special needs kids. lots of doctors, day care , equipment, diet, on and on. Yep! I used to roommate with a stripper. She claimed no income, even though she made more money in one night thn I made all week busting my ass at work. She got back $3,500.00 every year for claiming her one kid. Our tax dollars hard at work. 
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i dunno about the OP's employee, but my step brother (liberal asshole) has a special kid and they get all sorts of checks and benefits from many sources as well as two different special schools and short bus rides and special equipment for their home all for free. to tell ya the truth, even with all that free stuff, their child still costs them more than they get from the gov. Their child is a gift from God and deserves to have a chance. i feel that handicapped people should get help. i hate the fact that anyone is on the government tit. i mean i HATE it! but if anyone needs be on the tit, the handicapped folks should be first in line. |
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I work with a guy who probably makes ~24,000 a year before taxes
I don't know what is withheld from his check, but I know all all 7 of his kids are on Medicaid, they go to the ER for regular doctor issues (ear aches, flu...) He gets roughly 4 - 5,000 back every year. Makes me fucking sick... |
