View Full Version : Child Support and Obama's Stimulus Package
sunnyMI
Mar 22, 2009, 10:29 AM
My husband and I are both wage-earners and reside in Michigan. According to an article in today's newspaper, as part of the new stimulus package it will provide a refundable tax credit of up to $800 for married couples filing jointly. However, the taxpayers must still claim the credit on their income tax return. So the problem occurs if each spouse declares "married" on his/her W-4 form, we will then receive too much money in our checks resulting in a $1,600 credit ($800 each) which in turn we'll have to pay back come tax season due to over payment. When FOC reviews my husbands income it will reflect him bring home an extra $800 a year but in turn we will have to pay back due to the fact I will also be "benefiting" from the stimulus package. How can he adjust his withholdings so FOC does not in turn take 1/2 of the $800 tax credit and apply it towards Child Support. If he adjusts his W-4 line 6 withholdings will this "reduce" (prevent the full $800 tax credit be applied) his ordered amount with FOC for Child Support?
Thank you.
stevetcg
Mar 23, 2009, 04:31 AM
Child support is based on pretax earnings. This credit simply reduces the amount of tax owed, so therefor does not affect his income.
And its $400 each, not 800.
sunnyMI
Mar 28, 2009, 08:23 AM
Child support is based on pretax earnings. This credit simply reduces the amount of tax owed, so therefor does not affect his income.
And its $400 each, not 800.
Because both parties are married it will result in a double payment.
Breaking Down the Economic Stimulus Tax Credit | WBNG-TV Binghamton, NY | Local Top Stories (http://www.wbng.com/news/local/40240662.html)
stevetcg
Mar 28, 2009, 08:45 AM
Because both parties are married it will result in a double payment.
Breaking Down the Economic Stimulus Tax Credit | WBNG-TV Binghamton, NY | Local Top Stories (http://www.wbng.com/news/local/40240662.html)
Right - 400 per person, doubled is 800. Joint filers only file 1 return...
sunnyMI
Mar 29, 2009, 09:33 AM
Right - 400 per person, doubled is 800. Joint filers only file 1 return...
Married couples should only receive 800 dollars total, but there's the potential to overpay them too.
Since we are listed as married with our employer, we are going to have double ($1,600) given back to us, and we going to owe big time when our taxes are done a year from now.
This is different than the stimulus.
stevetcg
Apr 9, 2009, 11:30 AM
Married couples should only receive 800 dollars total, but there's the potential to overpay them too.
Since we are listed as married with our employer, we are going to have double ($1,600) given back to us, and we going to owe big time when our taxes are done a year from now.
This is different than the stimulus.
So I get a reddie because you don't understand how payroll and taxes work? Nice. If you know all the answers already, why are you here asking questions?
sunnyMI
Apr 9, 2009, 05:42 PM
So I get a reddie because you dont understand how payroll and taxes work? Nice. If you know all the answers already, why are you here asking questions?
I was asking the question as to how it would reflect Child Support due to the flaw in the payroll withholdings. My question was never answered as you just told me that is only $800 for married couples but again due to a flaw there will be an overpayment which will result in individuals getting a large tax bill next year.
stevetcg
Apr 9, 2009, 06:09 PM
Child support is based on pretax earnings. This credit simply reduces the amount of tax owed, so therefor does not affect his income.
It was answered in the first post. You just wanted to argue taxes though, so apparently you missed it.
stevetcg
Apr 9, 2009, 06:10 PM
I was asking the question as to how it would reflect Child Support due to the flaw in the payroll withholdings. My question was never answered as you just told me that is only $800 for married couples but again due to a flaw there will be an overpayment which will result in individuals getting a large tax bill next year.
Its only a flaw if you incorrectly file your W-4.