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| *Loan,banking and credit>>>child tax |
Are individuals with at least 7 children/dependents exempt from paying taxes? |
A bus driver told me that after the birth of his seventh child he was permanently excluded from paying all taxes. It depends on how much you make, no you are not permantantly excluded from taxes. For each child you have you will get one exemption. Each exemption in 2006 is worth $3300. 7*3300= 23100. Plus you get one for yourself and one for your spouse, so that's an additional 6600+23100= $29700. If you are married you will also get a standard deduction of 10300 unless you itemize. so 10300+29700= $40,000. For federal tax, you can make up to $40,000 combined if you're married without being taxed one red cent. If you qualify for child tax credit, you can make even more without being taxed. Point is, you are not excluded from tax, but you will have to be making quite a lot in order to pay taxes. States taxes differ from federal and usually don't have as high of exemption rates as federal, so that amount would be lower, this goes for local/city taxes as well. There is also a flat tax called FICA that is taken out of your paychecks. Social security takes 6.2%, up to the first $90,000 income from an employer, and then medicare takes 1.45% from your check without a limit. So the total flat tax is 7.65%. I hope this answers your question! Source(s): College student with major in accounting. That's not true. I'm one of seven children and my parents paid taxes. no, they aren't. not generally, at least. due to other economic reasons, the bus driver might be exempt, but its not something that happens automatically. well right on more power to him if thats true but i wouldn't want to raise 7 kids just not to pay taxes are you kiding me...... thats way to many kids. no I think you have tpay taxes even if you have 20 kids Get real! No you are not exempt from paying taxes. You are in a different bracket but the people who think they can just sit around and spit out tax deductions are not thinking about long term financial problems! |
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