Question for the tax buffs out there (COMPLETE and TOTAL vanity!)

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[Green Knight]

Ok, say a family makes about $75,000 a year (Combined earnings of husband and wife), and has 2 children. What would they get back under President Bush's tax cut plan?

[Green Knight]

I'm not much of an expert (Not much of anything, as a matter of fact) when it comes to figuring out taxes, except that I'd much prefer a NRST. :P So can someone who's more knowledgeable in this area help me out, here? I need to know the answer to this for a relative of mine who needs the extra cash and wants to know how much to expect. Thanks.

[HiJinx]

Right up front, if the children are under 17, they will receive an $800 rebate/refund check in July or August, much like the $600 may people received last year...or was it the year before?

The most noticeabe difference will be an automatic decrease in the FIT withholding from their paycheck, resulting in an increase in net pay. The numbers should be available at www.irs.gov in Publication 15...that outlines how much is withheld from a paycheck based on frequency of your paycheck and the number of exemptions claimed.

(I haven't figured mine out yet, 'cause I'm not an expert either!!!)

[CobaltBlue]

Online calculators - we'll save about $3000.

This one is a quickie:
http://www.smartmoney.com/tax/filing/index.cfm?story=bushtaxcut

This one goes into all the details:
http://www.turbotax.com/calculators/lawchange/notemplates/

[IYAS9YAS]

What about married no kids and about $50,000 total income?

[MainFrame65]

Thanks to the complexity of the system, this is not easy to answer. How much of that income is dividends? How much capital gains, and how much of that is 1-year or 5-year long-term? And how much is offset by carryover capital losses? Did you sell your house, at either a gain or a loss? Did you either contribute to, withdraw from, or convert any tax-deferred investments like a 401k/403b, IRA, Roth IRA, etc.? Did you contribute to or withdraw from a 529 (state education savings plan) or sell savings bonds, and if so, did you use the money for qualified education expenses?

That's not all, but we have not even started on the complicated part, itemized deductions, which might alter your taxable income.

The new tax law specifically provides the child tax credit, lower tax rates on dividends and capital gains, lower income tax rates, and lower withholding. I think the rebate they are talking about is just the child credit, not any kind of withholding adjustment. That would be up to you.

[Mind-numbed Robot]

Ok, say a family makes about $75,000 a year (Combined earnings of husband and wife), and has 2 children. What would they get back under President Bush's tax cut plan?

Their two children. Under the Democrat plan the government would have kept them.

[Green Knight]

Just talking about income tax, here. And I'm pretty sure the answer to all those questions in the first paragraph is "No".

Anyway, is it better for said married couple to file jointly or separately?

[MainFrame65]

"Just talking about income tax, here. And I'm pretty sure the answer to all those questions in the first paragraph is "No".

"Anyway, is it better for said married couple to file jointly or separately?"

That first paragraph is about defining "adjusted gross income", which is the first step in figuring out your tax. And remember that taxes are lower on both dividends and capital gains. Regarding filing jointly or separately, relieving the marriage penalty was also part of this new law, if I remember correctly, and the only reason to file separately would be to lower the deduction exclusions, such as if one of you had high medical expenses. And of course, only if each of you had an income within the same tax bracket.