***ACTION ALERT*** Child Tax Credit

[bobbolink]

Did you know that a parent working 30 hrs. a week for 50 weeks a year at $7.25 earns too little to qualify for the Child Tax Credit?

Outraged?

If so, please have your Organization sign a letter to make the Child Tax Credit reach many more working families. We strongly encourage organizations from across the country to sign.

Deadline: Monday, July 7 at 5:00 p.m. eastern time

Not with an organization, but still want to speak out?
Click here to send a letter via email to your Members of Congress.
http://salsa.democracyinaction.org/o/125/campaign.jsp?campaign_KEY=25071

Background: Middle- and many upper-income families receive a $1,000 Child Tax Credit (CTC) for each child age 17 and under. Some poor working families who do not owe federal income taxes benefit from the CTC, but current law requires they have minimum earnings of $12,050 to receive at least a partial credit. If their earnings are lower they are too poor to qualify! Further, every year the minimum is adjusted upward for inflation. It started at $10,000 in 2001; the annual increases have excluded low-wage-earners every year.

Congress is working to extend certain tax benefits to corporations and individuals. The House has already passed a tax bill (H.R. 6049) that includes a big improvement for low-income families: it lowers the minimum for receiving CTC to $8,500 and removes the inflation adjustment. Families of over 13 million children would become newly eligible to receive the credit or would receive larger credit under the House bill. The Senate has not acted, but Finance Committee Max Baucus (D-MT) has introduced a bill with a $10,000 minimum. The families of more than 1.5 million children would either receive no CTC or a smaller refund at the higher $10,000 level. Congress must not delay in enacting tax legislation that includes the $8,500 refundable CTC threshold and ends annual inflation increases.

To sign your organization on the letter go to: http://salsa.democracyinaction.org/o/125/petition.jsp?petition_KEY=1294. Please sign only if you are authorized to do so by your organization!

Individuals can send an email to their members of Congress by here: http://salsa.democracyinaction.org/o/125/campaign.jsp?campaign_KEY=25071.

Please forward this email to others in your network.

Children and their families should not be denied the Child Tax Credit because they don't earn enough.

Thank you!

[flashl]

1. K/R nt

[bobbolink]

3. Thank you!

:pals:

[flashl]

9. Thank you for your work. nt

[I Have A Dream]

2. K&R! nt

[midnight]

4. This minimum level of income to qualify for credits show a

lack of understanding about those living in poverty.

[bobbolink]

16. "lack of understanding about those living in poverty. "

Indeed!

We ALL need to thoroughly educate ourselves about the facts, and continually make others aware.

There are so many myths abounding, and we ALL need to work to overcome them!

thank you!

[balantz]

5. K&R

Thanks for the info and the links bobbolink.



:kick:

[Triana]

6. They should abolish this or make sure only low-income families can get it...

...WHY are upper income families getting it?

[AzDar]

7. Kick...

:kick:

[geek_sabre]

8. do you get tax credits when you don't pay taxes?

The head of a household with an income $12,550 or under doesn't even have to file a return (which is why the minimum for a CTC is around there), so is this just free money? Or returning social security tax?

can a tax credit exceed the amount of taxes paid?

This feels good, but can you link to some more info on the proposal? How much would a $8,500 household receive?

[northzax]

10. yes, actually, you can

it's not a deduction, it's a credit.

[Obamanaut]

18. Perhaps I don't understand. If a tax credit is a reduction in the

amount of tax one owes (tax liability), and one does not have a tax liability due to the income level, then how does one have a reduction (tax credit) of that non-existent liability?

[MissDeeds]

11. K&R

Amazing that people who most need it are denied. Thanks for bringing this to our attention, Bobbolink.

:kick:

[hughee99]

12. Just to clarify,

Families (in general) receive $1000 tax credit for each child under 17.
Families making less than $12,050, and do not owe federal taxes, do not get a tax credit.
The letter is asking that people making less than $8,500 should still be eligible for a full refundable child tax credit of $1000 per child, and that this amount ($8500) not be adjusted up for inflation in the coming years.

Is this correct?

[maryf]

13. Kick & rec

Thanks Bobbie! :yourock:

[redqueen]

14. ...

:kick:

[hfojvt]

15. I don't see how this matters

The credit is NOT refundable. No family of two (one parent, one child) making less than $12,050 is gonna have a tax liability anyway. The standard deduction for head of household is $7,850 plus exemptions of $3,400 per person, that's $6,800 for a family of two. So anyything less than $14,650 leaves a tax of zero on line 46 of form 1040. Child tax credit is on line 52. So put $1,000 there. Woohoo, they get a child tax credit! Then line 56 is the total of all credits. Line 57 says "subtract line 56 from line 46. If line 56 is more than line 46, enter -0-" Since line 46 was zero, the net result of the child credit is zero, regardless of those income limits. Until the credits are made refundable.

So what am I missing?

[smokey nj]

17. K&R!

[bobbolink]

21. Thanks, smokey!

[RB TexLa]

19. How about tax credits or a change in the tax rates to give everyone earning that the break?

if they have children or not?

[I Have A Dream]

20. Kick! nt

[maryf]

22. another kick, nt

[bobbolink]

23. thanks for pushing it...

Wish it was more popular..

:(

:hug:

[maryf]

24. I thought kids always pulled them in...

If nothing else...

Thanks for this Bobbie! you just keep on ticking!! :hug: