immigrants and taxes

[K C Muffin]

yup, it sucks. The first year I was married (the first time), we filed jointly. We were young and stupid. We owed a huge amount for that time in history. But sister was getting money back. Same circumstance. How? Seems her hubby had an accident while in the Army. His accident was not related to his service, but a traffic accident while on R & R. So........he received monthly stipends for his "permanent disability". When he had to go for a physical, he just faked what he needed to and continued the monthly stipends, which were tax free. I was livid. Sister didn't stay married to him long. Good thing. I'da missed her!

[Outofdodge]

Originally Posted by K C Muffin

Well, I know because I'd done it before. You can withhold with as many exemptions as you want, making your withholding very, very small in some cases.
[snip]
If these guys are doing it (and I honestly don't know what they're doing), they can claim as many as they want, making their withholding very, very small. If they don't file a tax return, they don't get it back. But it's precious little in the meantime.

So the question is, do they really pay taxes? .

Until this year, employers were required by law to submit to the IRS any W-4 that claimed more than 10 dependents. I congratulate you on your cash/flow tax savy, you did the right thing. Why people purposely over withhold to get a large tax return is a mystery to me.

It is estimated that as much of 10% of the current social security surplus is a direct result of with-holdings from undocumented aliens that they will never be able to collect on. contrary to what is being posted here and in other threads, the undocumented alien working in places like Excel with false identification, but working none the less is paying into the tax system. Those people working on a cash basis, both undocumented and "legal" are both breaking the law as is the employer if he/she/it have x number of workers or x amount of payroll.

[Highwayman]

That’s the difference between a deduction and a credit. Deductions can only reduce your taxes but not below zero. Credits can reduce below zero and get more money than you pay in.

When you hear that line about “tax cuts for the rich” this is how they give tax cuts to the poor, by increasing the EIC giveaways.

[Detector]

I don't think anyone actually means they pay no taxes at all because if you buy from a retailer you will pay tax. I believe they mean they pay far less and in some cases receive for more then paid in illegally. I.E. claiming a boatload of dependent.

[Outofdodge]

Originally Posted by Highwayman

That’s the difference between a deduction and a credit. Deductions can only reduce your taxes but not below zero. Credits can reduce below zero and get more money than you pay in.

When you hear that line about “tax cuts for the rich” this is how they give tax cuts to the poor, by increasing the EIC giveaways.

Close but no cigar. Deductions reduce one's taxable income and only to the extent the deductions exceed the standard deduction. Depending upon one's tax bracket, the value of a deduction in terms of tax relief may be more for some than for others. If you deduct $5,000 for property tax and you are in a 25% tax bracket, it had the effect of reducing your tax liability $1,250. If you were in an 18% bracket then it would reduce your tax liability $900.

Tax credits on the other hand reduce the tax liability dollar for dollar. If you had a tax bill of $5000 and had a tax credit of $5000 then your tax liability would be zero, regardless of bracket.

The EIC is an important tool for the working poor. While on the surface it may seem generous to those not getting it, no one is getting rich off of it. 30 years ago my family was "one of those" people. While I personally am no longer in that situation I have not forgotten what it is like and never will.

[littlemom]

If you own a home you pay property taxes because you OWN property you do NOT pay property taxes when you RENT. The owner of the place you are renting from is paying property taxes. Everyone pays sales tax when they buy at a retailer. However everyone does not file a TAX RETURN, so it this that ticks me off. If you are working and getting a paycheck then yes you are having taxes withheld but this does not mean you are having the right amount taken out or paying your share. I do not like someone telling me they are here for a better life and then flying a flag from their home country. If your so proud of that flag go back and fly it in your country. This is America and with all the benefits that come with living here we had those that gave their life standing up for the flag and the American Dream. How are these illegals working and paying so called employment taxes without a social security number? I don't have a problem with anyone comeing to the United States and wanting a better life but do it Legally, don't ask for a handout and don't ask me or my children to learn your language so it's easier for you.

[Highwayman]

Originally Posted by Outofdodge

Close but no cigar...

Pardon me, but I do smoke cigars.

I don’t disagree with what you said but…

If you have a tax bill of $5000 and a credit of $8000 the IRS hands you back $3000 more than you paid in.

[Outofdodge]

Originally Posted by Highwayman

Pardon me, but I do smoke cigars. [snip]If you have a tax bill of $5000 and a credit of $8000 the IRS hands you back $3000 more than you paid in.

I'm parital to Romeo and Julietta's Cidros #4 myself, or a good Macundo. What about you?

Back to the tax credit issue, it depends upon the credit. Some credits are limited to the tax liability or a $ amount of the credit itself. The EIC is one of those that give money back in excess of taxes paid. But the EIC was expressly designed and enacted to lessen the burdern of the Social Security withholdings on the working poor. Which, BTW, is the one tax that even the working poor have to pay.

[Outofdodge]

Originally Posted by littlemom

If you own a home you pay property taxes because you OWN property you do NOT pay property taxes when you RENT. The owner of the place you are renting from is paying property taxes.

No the renter is paying property taxes, albeit in the form of additional rent The landowner is responsible for ensuring the tax bill is paid.

[Lone Gunman]

Why isn't something done about all of these people driving around with Texas tags on their vehicles? If they really want to be a part of our society they should scrap that Texas tag and get a good old Ford County Kansas one like the rest of us. If they continue to run on out of state tags that's just one more tax they aren't paying.