Got an email that turbotax.com is ready for anyone who wants to start working on their taxes for 2005. This year, we've had nothing (federal) withheld as the child tax credit takes care of any liability. Trying ot look ahead to 2006 and see if that will be the same. We won't be due much in the spring, perhaps $200-300. While it would be nice to get back more, its been more useful to have more of our weekly pay.
Does anyone know if the $1000 amount per child changes in 2006? If it stays the same, we should be ok. If it goes down, will need to adjust withholding.
From what I gather, for tax year 2006:
Standard deductions/exemptions for a married couple w/ 3 kids is $16,500+$10,300. So the first $26,800 earned has no tax due. Then, the $3,000 tax credit will cover liability on an additional $25,033 of income. (The first $15,100 is taxed at 10% = $1510 tax. The next $9,933 is taxed at 15% = $1490 tax. $3000 tax credit for $3000 tax liability.)
Does anyone know if the $1000 amount per child changes in 2006? If it stays the same, we should be ok. If it goes down, will need to adjust withholding.
From what I gather, for tax year 2006:
Standard deductions/exemptions for a married couple w/ 3 kids is $16,500+$10,300. So the first $26,800 earned has no tax due. Then, the $3,000 tax credit will cover liability on an additional $25,033 of income. (The first $15,100 is taxed at 10% = $1510 tax. The next $9,933 is taxed at 15% = $1490 tax. $3000 tax credit for $3000 tax liability.)
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