Net Income question

[Anonymous]

So my income is a little weird, I am unmarried with a domestic partner and two children. We claim several dependants on our weekly paychecks that allow us to pay next to nothing in federal / state tax. Due to tax credits, we receive a tax return each year that is significantly more than we pay in taxes each year. Would I be able to consider these credits as income for application purposes or no? I have limited debt, and this money does help pay for my expenses throughout the year. Haven't done this before, but figure why not if it's eligible.

[CreditCuriosity]

How I see it no, but I am no expert.  Curious what people smarter than myself might say with how they would justify it as income as it isn't something like disability.

[xaximus]

I dont believe you can use it and file it as income since it's non-taxable. Income is stated as monies such as wages, salaries, bonuses/tips, investments, child support/alimony and few other things.

I.E. - person has reported income of $12k. With 3 dependents, the person's tax liability may only be 1k which they have to pay but because of 3 dependents, they may get back 2k. That 2k is non-taxable and would not be considered taxable income.

(This information is for knowledge only and I am not a tax attorney.)

[wasCB14]

As someone else who has a weird income, my approach has been to only include what I can quickly explain and prove.

I figure if I have to justify my stated income, it won't be to an economist or tax professional with time to think it over. It would probably be to someone in a hurry with 20 other customer files to examine.

So I don't think you'd be in the wrong to include it, but I do think it might not be worth the inconvenience with other healthy CLs.

[Anonymous]

xaximus had a very good reply.

my opinions would be that it would probably not be enough to gain anything in the credit world,

but perhaps may give you some hurdles and/or headaches down the line.

Also, due to the ever changing tax laws, and more importantly the most recent changes,

you may and probably will see that refund change.

I myself get a close to 5 figure return, however since it is a refund......it is already technically

included in your gross wages already....and was taken out for tax, but refunded due to dependants/etc.

Not sure if the refund can ever surpass gross wages,

however im not a tax attorney or expert or legal advisor so maybe im just not thinking correctly.

[Anonymous]

My return is more than I pay in taxes. I pay $8 a week in tax, and get around a $4K return from federal, not including state. My domestic partner also gets the same type of return. So technically this isn't money I paid and am getting returned to me. Both of us about $30K a year at 24/26.

[Anonymous]

I'm curious what you mean by "several dependants."  How much is several?

[Jnbmom]

 I certainly hope you are both not claiming HOH? 

[ds3]

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@Jnbmom wrote:

 I certainly hope you are both not claiming HOH? 

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That's exactly what I was thinking...sure sounds like it.

[Anonymous]

No, only the person who makes the most claims HOH. Not both. We claim 4 on our paychecks, 1 kid each at tax time. No funny business..