The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Child Tax Credit||Date: 7/13/1999 6:06 PM|
|Author: BobCPA||Number: 17258 of 122520|
I'm a new investor & just finished the first four chapters of 'The Motley Fool Investment Workbook'. The workbook stresses the importance of investing first in tax sheltered accounts to avoid paying taxes on investment income.
Because of the new Child Tax Credit I actually receive more credit than I owe in income tax.
Would it be to my advantage to report my investment income now when I owe no taxes, instead of later when I may owe taxes?...
In some cases the Child Tax Credit can provide a tax refund if you can't use it all to offset your income taxes. In other cases it will not and therefore be lost. So, if you get a refund because of the credit the tax shelter logic still holds. If not it may be more advantageous to generate taxable income, at least upto the amount of unused credit available.
Hope this helps
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