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Can they take earned income credit from a tax return for back child support even though it is being paid now?
Yes they will intercept your taxes until that balance of back pay is paid and current. Then once you are paid you may have to ask that state that intercepted your tax returns to do a tax offset review. Give all documents that show you have paid and or current, then they may dismiss the lien against you. You may be entitled to a refund from that state.
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I presume you mean your return showed a "refund" of 1079. Presuming your back child support is in their system, and it is more than the refund, the entire refund wi…ll be applied against it. Any reason it shouldn't be?
yes, even if no arrears exist see links below The State should not be taking your tax refund if you are current. (Making the court-ordered payments on an arrearage doesn't …mean you're current). Before the State intercepts a tax refund or other payment, it sends advance notice. If you're current, you need to contest that notice as soon as you receive it.
A creditor cannot seize a federal tax refund, but the creditor can file a lawsuit and if they are awarded a judgment they can levy the bank account in which a tax refund is de…posited.
The EITC is a credit for certain people who work. You (and your spouse, if you are filing a joint return) and any qualifying children listed on Schedule EIC need valid social …security numbers. Find out if you are eligible for the Earned Income Tax Credit (EITC) by answering some questions and providing basic income information. The program will also assist you in determining your correct filing status, determining whether your child(ren) meets the tests for a qualifying child, and estimating the amount of credit you may receive. However, if you were denied the EITC due to a reckless or intentional disregard of the rules, you cannot claim the EITC for the next two years after the denial. If your error was due to fraud, you cannot claim the EITC for the next ten years after the fraud determination. An online system exists to check your qualification and tell you how much you'll get at: http://apps.irs.gov/app/eitc2007/SetLanguage.do?lang=en Basics: You may qualify for the Earned Income Tax Credit, or EITC, if you worked last year, but did not earn a lot of money. EITC is a refundable tax credit meaning you could qualify for a tax refund even if you did not have federal income tax withheld. To qualify for the credit, you must: * Have a valid Social Security Number (if you are filing a joint return, your spouse also must have a valid Social Security Number) * Have earned income from employment or from self-employment * Have a filing status other than married, filing separately * Be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return * Not be a qualifying child of another person (if you are filing a joint return, your spouse also can not be a qualifying person) * Not have investment income over a certain amount * Not file Form 2555 or 2555-EZ (related to foreign earned income), and * Have a qualifying child OR: ** be age 25 but under 65 at the end of the year ** live in the United States for more than half the year, and ** not qualify as a dependent of another person If you qualify, the amount of your EITC will depend on whether you have children, the number of children you have, and the amount of your wages and income last year.
There are programs in force that wll direct your refund to be applied to your back child suppport..hard to tell if your on the list of one. Of course, it's what you would want… done with that money anyway isn't it... Child support is one of those things that all systems are being alerted to and you can expect to receive nothing from governments, and find easy garnishments placed and judgments supported until they are paid in full
Child support payments would NOT be reported on your income tax return as taxable income.
To qualify to claim the EIC, you must first meet all of the rules explained in Part A, Rules for Everyone . Then you must meet the rules in Part B, Rules If You Have a Qualify…ing Child , or Part C, Rules If You Do Not Have a Qualifying Child . There is one final rule you must meet in Part D, Figuring and Claiming the EIC . You qualify for the credit if you meet all the rules in each part that applies to you. If you have a qualifying child, the rules in Parts A, B, and D apply to you.If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Table 36-1, Earned Income Credit in a Nutshell. Use Table 36-1 as a guide to Parts A, B, C, and D. The table is a summary of all the rules in each part. Go to the IRS.gov web site and use the search box for Publication 17 go to Chapter 36 discusses the earned income credit
It was enacted in 1975, but has seen many revisions over the years.
Uh, pay the child support or back taxes.
Errors are frequent. see links
Have patience and wait until the IRS completes the processing of your information and make any adjustment that they determine they need to make.
Can wages earned overseas that are not subject to federal income tax be garnished for child support?
I've worked several overseas assignments. The US is one of the only countries that taxes foreign income so I can't imagine a situation where your foreign income would NOT be s…ubject to US federal taxes. As such I would further suppose that it is therefore liabel to be garnished. I'm improving the previous answer: My husband worked overseas. He did not have to pay US federal taxes because he paid German taxes and a person cannot be double taxes on income. He still had to pay his child support obligation and it was garnished from his pay.
You should speak with your State's Child Support Enforcement Agency (the official name of that agency varies state to state, but it's usually called something along thos…e lines).
Self-employment income does qualify as earned income for the credit. If you have children, the EIC is often more than the self-employent tax you owe. This year, it can a…lso qualify you for the Stimulus money.
IRS waited 2 years to take back your child tax credit because your husband did not report his social security retirement benefit Even though IRS instructed us not to include it on the 1040?
At best you may be able to avoid the interst and penalties if you received this advice in writing, but my bet is that you do not have it inwritting. My thought is that you do …not have to report certain amounts of social security income up to x amounts considering all aspects of income. By IRS rules they may also waive penalty and interest if you received erroneous verbal advice from the IRS. But, I'm not sure how you would prove this to them.
Yes. Anything provided or paid without a court order can be considered a gift, regardless of evidence. see link
Yes, if there is an unpaid balance.