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FAQ

In the US, how is it possible to get back thousands more in a tax return than you pay in?
Earned Income Credit is a program aimed at low-income working people with dependents and can give a payable credit of up to $6000 even if no taxes were owed.Earned Income Tax Credit (EIC) Basics, Phaseouts, Tables (2018 & 2019)That is one way.In the high finance corporate world there are government subsidies that apply to specific industries which can result in the government paying a company more than their tax bill was.
Did we all actually get 17% less in tax refunds this year in 2019 as a result to the Republican Tax plan? How did that happen, considering there was"supposed to be" tax cuts?
I’m going to make this so easy that even a democrat can understand:Your buddy says that to sleep in his basement between your gigs at Starbucks and your budding career as a drummer for a local band (hey, someone has to pay off that $100k student loan you took out to be a Gender Studies Major), you have to “pay” him 2 joints per month. Sounds fair, right?You, being so high out of your mind, over pay, and instead give him 3 joints per month rather than 2.At the end of the year you do your “taxes” and determine that you’re getting a “refund” of 12 joints, because you overpaid your buddy by 1 joint per month.The next year your buddy passes a cut in your rent. Now you only have to pay him 1 joint per month. Again, being high out of your mind, you end up paying him 1.5 joints per month.At the end of the year you do your taxes, and your “refund” is 6 joints.OH MY GOD!!! MY BUDDY SAYS I WAS GETTING A CUT IN MY RENT!!!! BUT THIS YEAR I ONLY GOT 6 JOINT REFUND INSTEAD OF 12!! WHAT A LIAR!!!But then you came down from your high, did the math, and calculated that:Year 1: You paid a total of 24 jointsYear 2: You paid a total of 18 joints.Even though your “refund” was smaller in year 2, you actually paid LESS in rent.