Tax credits

Chod is not only my classmate, but also a friend of mine had come to me for some advice on a tax related issue. He is worried about several issues on his tax return next year. One of his concern is how his tax return would be affected if he usually gets financial aid but turn out next year he won’t be. What would be better for him? He asks me if him and his wife should get a loan or pay the school tuition from their own pocket. Well I explained to him that if he gets a loan is not a good idea because borrow a loan for school has to pay interest rates and you are paying actually more than you should. He is married and is age of 23. This year he has already filed his tax return, he wants to know if he didn’t file jointly but filing a separate…

Energy Investment Tax Credit is a very important federal policy to promote solar energy in the United States. In 2015, the Solar Energy Industries Association advocated for the extension of the renewable tax credit to increase the investments in the solar and wind industry in order to provide business certainty to investors and project developers. The solar power industry expected the tax credits to expire in January 1, 2015. The Solar Investment Tax Credit is continuing to drive advancements…

Family Tax Benefits - Australia On moving to Australia, NZ citizens do qualify to receive the family tax credit benefit from the Australian government. (Kelsey, 2011)In Australia this policy is known as the Family Tax Benefit (FTB). The Australian FTB is administered by their Dept. of Human Services. The minimum a family can receive from the family allowance is $50. This amount received depends on the families’ income. The FTB is divided in to part A&B. FTB Part A The payments are either made…

families versus serving as a job for teenagers or young adults. If pay for employees were to increase, an overall rise in cost of products would increase as well. As Surowiecki concludes his article, he states that, “Realistically, then, a higher minimum wage can be only part of the solution. We also need to expand the earned-income tax credit and strengthen the social insurance system” (Surowiecki). In Surowiecki’s article, he does elude that there are other ways to help those in poverty,…

solution to the problem is to Increase the Earned Income Tax Credit for childless workers. One of our nation’s most effective anti-poverty tools, the Earned Income Tax Credit, or EITC, helped more than 6.5 million Americans—including 3.3 million children—avoid poverty in 2012. It matters because Earned Income Tax Credit helped a lot of Americans and children because they really needed it. So now they could use it for something important like For school. It’s also an investment that pays…

Assistance for the Needy Families (TANF) that is a federal program the benefits consist of a 60-month limit for a cash aid benefits for recipients. Generally, each state has their own guidelines for the TANF; however, the requirements may differ, due to economic factors. The TANF program, should also meet the federal work participation requirement (WPR). This is a mandated work performance requirement for states that have a TANF program. TANF program was created to empower individuals and…

parents with children made up only ten percent or less and most receiving minimum wage were under the age of 24. In 2007 through 2009 when the three 70 cent increases began, it was not focused on the poor and low income poverty people, so 85 percent saw no direct financial benefit from the increase. The Fair Minimum Wage Act (FMWA) was not as cost-effective as the policy mandated and was a poor way of trying to reduce poverty. In What’s Best at Reducing Poverty, the authors stated that “an…

illustrate, consider the following scenario: First, volatility and variability in hours worked changes expected wages by week, which makes meaningful budgeting impractical. Then, an unexpected expenditure such as a breakdown of a car requires spending all existing ‘savings’ in addition to perhaps taking an informal loan from a family member or covering the gap with a credit card or payday loan. In the rare case earnings exceed outstanding expenses, working a job that does not qualify for direct…

The account is sent to a collection agency who will start calling and sending letters demanding payment. At this time, the fact that you 've defaulted on the loan will be sent to the credit agencies. It 'll be on your credit report each time you try to get credit anywhere. It 'll sink your credit score immediately. Federal and state taxes might be withheld to make the loan payment. The IRS will take any money that you feel you 're owed during tax time and use that to repay your loans. The…

from tax credits and income benefits” in the long run (Edelman 1). The answer is clear, government programs do work. So instead of implementing funding cuts to these programs, the government should work towards increasing funding to expand and strengthen programs (Dreyer 3). Solution Child poverty is an issue that is costly to stabilize and eradicate, but, the effects cost and threaten the future security of America as a nation. Consequently, there needs to be increased government spending to…