[quote=davelj][quote=SD Transplant]I’ve heard the child deduction is in the package as well….[/quote]
Phasing it out altogether, probably not gonna happen. But limiting the deduction to only those couples earning less than $150K (just to throw out a number), that could get traction.[/quote]
*If we’re talking about the child tax credit, most higher income families already can’t get this.
The phaseout begins at
$110,000, for joint returns.
$75,000 for single returns.
$55,000 for each married but seperate return.
*If we’re talking about the standard deduction for a dependent, it’s just reduces your taxable income by $3,650 per dependent roughly. For higher income earners, this is a Whop-dee-do. You’re going to paying up the noses in AMT anyway 🙂
*If you’re talking about child care credit, it’s just $2100, and most of the time, child care expenses are pretax if you have a dependent care account.
*The biggest tax break is the adoption credit…Roughly, $12,150 (as of 2009). But it costs a lot to adopt to begin with.
Other than that, removing any type of child tax credit/deduction isn’t going to make a huge difference for higher wage earners. Where it’s going to hit are people at lower income scales.
So much for no higher taxes for middle class 🙂
