Tax Relief for Individual and Families

January 1, 2010

The new tax relief for individuals and families states that there would be a refundable tax credit up to $ 400 for working individuals and up to $ 800 for working families. The tax credit is calculated @ 6.2 percent on earned income and with adjusted gross income in excess of $ 75,000 and $ 150,000 for married couples who are filing jointly.


Tax payers can receive this benefit by receiving a reduction in the amount of income tax that is withheld from their salary checks or they can claim it as a credit from their tax return. This is actually called as “Making Work Pay Credit” and this proposal is estimated to be worth $ 14.225 billion over 10 years.

Refundable credit gives a tax credit up to $ 250 is given for government retirees who are not entitled to receive any social security benefits. This bill is expected to be worth $ 218 million in 10 years. Increase in Earned Income Tax Credit is about increasing the income tax credit for working families who have three or more children. Nearly 40 percent is given as earned income tax credit for the first $ 12,570 of earned income.

Tax relief plans such as the above, are plenty which are aiming at the improvement in education, savings for future of children and to take care of senior citizens. Refundable child tax credit and education tax credit are also quite benefiting to the people who wish to give proper education to their children.

Tax relief for people would actually bring more revenue for the government, as the tax payers would pay taxes on time, to receive benefits and stimulus payments from the government. Further, this will improve the system of governance and the process of tax payments. Treasury department can take a review about the total tax payments received and the actual benefits award to people. In this manner there is a scope for plenty of coordination and there a clear presentation of facts and figures.


On one side, the government is helping people to take benefit from tax relief and on the other side, the tax payments are on time either filed individually or jointly. This partnership of federal government and people, which extends a very strong relationship between the people and the government, will also increase the tax payments collected by the Treasury Department. Further more new schemes in tax relief and tax credits would in fact encourage people to pay taxes on time and will help to save their earnings. The promotion of education and social security benefits to retirees would help people to make a better living. Therefore, the government has been doing a very good job by providing tax relief and by introducing new methods of tax credits for the benefit of individuals, families and children. In this manner, there can be progress in the government and also a better living standard for low income and high income group of families.

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Written by Uncle Sam · Filed Under Taxation 

Comments

2 Responses to “Tax Relief for Individual and Families”

  1. Deborah Taylor on February 1, 2010 at 9:10 am

    The tax credit actually worked for my family this year because, we actually recieved a larger refund and I actually worked less hours in 2009. For someone like Cindy, I think it would be better if a seperate check was issued, for instance; each house hold recieved a stimulus check in (2008). That way she could see the money insted of just being told that she recieved it.

  2. Cindy Cassity on January 31, 2010 at 6:53 pm

    Last year we received $1900 refund from Federal taxes. This year it is looking like we will OWE $2500. Comparing the two returns, we made $250 more in ‘09, one child turned 17, everything else was pretty much the same. We are being penalized $47 for not paying in enough taxes. Can’t comprehend a $4500 increase in my taxes. I did not ask for this stimulus package.

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