Tag Archives: income tax

Teenagers Are Cheap?

As a newly acclaimed Philosopher-without-portfolio, I have taken my responsibilities seriously, to think about whatever needs to be thought about–without restrictions. I recently completed and submitted my income taxes. Naturally, that involves a great deal of thought, usually such things as, “I need something for my headache,” or “I don’t usually drink hard liquor, but it’s beginning to sound better and better.”

I use TurboTax, which is causes mixed feelings. Yes, it is helpful and yes, it’s about 1/10 the cost of having someone prepare it for me; however, it’s parent company, and all the companies that have anything to do with tax preparation, were the ones who lobbied (a polite term for hiring and unleashing high paid but unscrupulous experts) to prevent the simplification of the tax code. After all, if taxes were simple enough to submit on a post card, these people might have to get honest jobs.

But I digress (it’s a philosophical thing).

One of the many oddities in the tax code is the child tax credit. This is means you can reduce your federal tax by up to $1000 per child. The criteria include that the child lived with you, is your dependent, you paid for their support (food, clothing, etc.). It also requires that the child be younger than seventeen.

Now, I’ll reserve my opinion about politicians, the Internal Revenue Service, lobbyists, etc., but do they have any idea as to how costs change as a child gets older. I could clothe both my kids for a year for the same amount of money as I now spend on their shoes. Once they hit that magic age to get a driver’s license, auto insurance increases.

With two teenagers with drivers licenses I spend as much on car insurance in two years as what my first house cost. One of them is away at college, can’t have his car on campus, but since it’s less than 100 miles, the price stays the same. Add in the class photos, yearbooks, formal dances, etc., and those incidentals for college, like books, tuition, room and board, and you get the picture.

But someone has decided that kids must be cheaper after they turn 17 and included it in the tax code. They must be in one of those states where recreational marijuana is not only legal, but can be written off as a business expense.