|
| |
Taxes "paid" by a
single-mother of two earning the median for women of $16,380 per year
| Line 7, W-2 Income |
$16,380 |
| less IRA deduction, OR student loan
interest, OR medical savings account, or moving expenses, or self-employed health
insurance, or SEP, or SIMPLE, or penalty on early withdrawal |
$1,600 |
| Line 33& 34, adjusted gross income |
$14,780 |
| Line 36, standard deduction, head of
household of two children |
6,450 |
| Line 37, subtract line 36 from 34 |
8,330 |
| Line 38, 3 exemptions |
8,400 |
| taxable income, subtract line 38 from
line 37 |
0 |
| tax |
0 |
| less foreign tax credit, OR credit for
child care, OR dependent care expenses, or credit for elderly or disabled, or education
credits, or child tax credits, or adoption credits |
? |
| EITC tax "due" from EIC table |
-$3,816 |
| other "credits", like excess
social security, RRTA, additional child tax credit, income tax withheld |
? |
| TOTAL REFUND FROM IRS |
$3,816 plus ? |
| Figuring the Earned Income
Credit |
|
| step 7 -- amount from line 7, form
1040 |
$16,380 |
| less taxable scholarship or grant or
PRI |
3,880 |
| step 8 -- taxable earned income |
$12,500 |
| plus nontaxable earned income |
0 |
| step 8-- total earned income |
$12,500 |
| Worksheet A--amount from step 8 |
$12,500 |
| amount from EIC Table page 45-47 |
$3,816 |
| Taxes paid |
-$576 |
| Property taxes "paid" through
landlord at a rent of $1,200 per month |
2,160 |
| Sales taxes paid at a rate of 8%
on a discretionary budget of $500 per month |
480 |
| Social Security taxes paid |
600 |
| Total taxes paid |
$3,240 |
| Less EITC |
$3,816 |
| Net social transfer payments
received from government |
$576 |
| Total social transfer
payments available to the majority of single-mother households |
|
| EITC less taxes "paid" |
$576 |
| Food stamps |
$3,600 |
| Welfare |
$6,000 |
| General assistance |
$4,800 |
| Education benefits |
$5,000 |
| Medicare, medical, and other health
benefits |
$5,000 |
| Women, Infants, and Chidren |
$2,400 |
| HUD |
$7,200 |
| AFDC |
$3,600 |
| TANF |
$4,800 |
| Workers' disability |
$15,000 |
| Social Security (one third of the
beneficiaries of this "retirement plan" are neither retired, nor did they
contribute to it in the first place |
$18,000 |
| |
|
