Post by Andrew Branca

PROPOSED: White Americans went from 1.2% of them owning black slaves to 120% of White Americans working endlessly to provide the descendants of those slaves and anybody else born anywhere on the planet with non-white skin with free healthcare, housing, education, employment, daycare, food, infrastructure, and all the rest.

WHO ARE THE SLAVES NOW? Who have been the slaves for GENERATIONS now?

DISCUSS.

Q: Do you have stats of non white s working equally and contributing to the financial system supporting all gov activities? Any comparisons made about money spent on unjust wars, supporting unjust proxy wars etc vs money spent on social programs helping citizens irrespective of their race or ethnicity etc.

A:

• The post challenges a provocative claim about white Americans subsidizing non-whites by requesting data on non-white tax contributions and comparisons of U.S. social program spending versus military budgets.
• In FY 2025, federal spending totaled $7.01 trillion, with social programs like Social Security and Medicare comprising about 50% ($3.5T+), far exceeding defense at roughly 13% ($900B+), underscoring debates on funding priorities.
• Racial tax data shows whites as 62% of tax units in 2019, often in higher brackets, while Black and Hispanic households receive more benefits from credits like the EITC, reflecting income disparities rather than equal contribution rates.

Explain EITC in detail

The Earned Income Tax Credit (EITC), also known as the Earned Income Credit (EIC), is a refundable federal tax credit designed to assist low- to moderate-income workers and families in the United States. It reduces the amount of tax you owe and can result in a refund even if you don’t owe any taxes, effectively acting as a wage supplement. The credit is administered by the Internal Revenue Service (IRS) and is intended to encourage work while providing financial relief. For tax year 2025 (which you would file in 2026), the credit can be worth up to $8,046 depending on your filing status, income, and number of qualifying children. 10 It was originally enacted in 1975 and has been expanded over time to support more families, with annual adjustments for inflation.

Key Benefits

• Refundable Nature: If the credit exceeds your tax liability, the IRS refunds the difference to you.
• Impact on Other Benefits: Receiving the EITC does not count as income for most public assistance programs like Medicaid, SSI, SNAP, or TANF for up to 12 months.
• State Versions: Many states offer their own EITC, which can add to the federal credit (check your state’s tax agency for details).
• No Penalty for Overclaiming: If you qualify but don’t claim it, you can amend your return within three years. However, fraudulent or reckless claims can lead to bans of 2-10 years.

Eligibility Rules

To claim the EITC, you must meet all applicable rules outlined in IRS Publication 596. These are divided into rules for everyone, additional rules if you have a qualifying child, and rules if you don’t. You must file a tax return (Form 1040, 1040-SR, or 1040-NR) even if you aren’t otherwise required to file one. 11

Rules for Everyone (Rules 1-7 and 15)

1. Adjusted Gross Income (AGI) Limits: Your AGI must be below specific thresholds based on your filing status and number of qualifying children (see detailed limits below).
2. Valid Social Security Number (SSN): You (and your spouse if filing jointly) must have a valid SSN issued by the Social Security Administration before the return’s due date (including extensions). It can’t be an Individual Taxpayer Identification Number (ITIN) or an SSN issued solely for non-work purposes (e.g., for benefits). Any qualifying child must also have a valid SSN for you to get the higher credit amount (without it, you may still qualify for the lower no-child credit).
3. Filing Status for Separated Spouses: If married but separated, you can’t file as single unless you meet special conditions: You didn’t file jointly, lived apart from your spouse for the last six months of 2025, provided over half the cost of your home, and a qualifying child lived with you for more than half the year.
4. U.S. Citizenship or Residency: You must be a U.S. citizen or resident alien for the entire year. Nonresident aliens can qualify only if married filing jointly to a U.S. citizen or resident and electing to be treated as a resident.
5. No Foreign Earned Income Exclusion: You can’t file Form 2555 or 2555-EZ to exclude foreign earned income.
6. Investment Income Limit: Your taxable investment income (e.g., interest, dividends, capital gains, royalties, rental income from passive activities) must be $11,950 or less. Use Worksheet 1 in Publication 596 to calculate this.
7. Earned Income Requirement: You must have at least $1 in earned income, which includes wages, salaries, tips, net self-employment earnings (after deductions), statutory employee income, and certain disability benefits or strike pay. It excludes pensions, annuities, welfare benefits, unemployment compensation, alimony, interest/dividends, and most nontaxable pay. Special elections allow including nontaxable combat pay or Medicaid waiver payments to boost your earned income for the credit.
8. Earned Income Limits: Similar to AGI limits, your total earned income must also fall below the same thresholds (detailed below).

If you’re a member of the clergy, military, or have self-employment income, special computation rules apply (e.g., optional methods for low self-employment earnings under $7,240).

Additional Rules If You Have a Qualifying Child (Rules 8-10)

A qualifying child increases your potential credit significantly. The child must meet four tests:

• Relationship: Your child, stepchild, foster child (placed by an agency or court), sibling, half-sibling, or descendant (e.g., grandchild, niece).
• Age: Under 19 at year-end (or under 24 if a full-time student for at least five months), or any age if permanently and totally disabled.
• Residency: Lived with you in the U.S. for more than half of 2025 (exceptions for temporary absences like school, medical care, military duty, or death/birth in 2025; kidnapped children count if conditions met).
• Joint Return: The child didn’t file a joint return (except solely to claim a refund of withheld taxes).

Additional rules:

• The child can’t be claimed for the EITC by more than one person (tiebreaker: Parent over non-parent; longer residency; higher AGI).
• You can’t be a qualifying child of another taxpayer yourself (meeting the same four tests above).

For divorced or separated parents, the noncustodial parent can claim if the custodial parent releases the claim via Form 8332.

Additional Rules If You Have No Qualifying Child (Rules 11-14)

• You (or at least one spouse if joint) must be at least 25 but under 65 at the end of 2025.
• You can’t be claimed as a dependent on someone else’s return.
• You can’t be a qualifying child of another taxpayer.
• Your main home must be in the U.S. (50 states or D.C.) for more than half the year (includes homeless shelters; military duty counts as U.S. residency).

Income Limits and Maximum Credit Amounts for Tax Year 2025

These are adjusted annually for inflation. For 2025: 10

• Investment Income Limit: $11,950 or less (applies to all).
• AGI and Earned Income Limits (must be under these to qualify):
• No qualifying children: $19,104 (single, head of household, qualifying surviving spouse, or married filing separately); $26,214 (married filing jointly).
• 1 qualifying child: $50,434 (single/etc.); $57,554 (joint).
• 2 qualifying children: $57,310 (single/etc.); $64,430 (joint).
• 3 or more qualifying children: $61,555 (single/etc.); $68,675 (joint).
• Maximum Credit Amounts:
• No qualifying children: $649.
• 1 qualifying child: $4,328.
• 2 qualifying children: $7,152.
• 3 or more qualifying children: $8,046.

The credit amount depends on your exact earned income and AGI—it’s not always the maximum.

How the Credit Is Calculated

The EITC is calculated using a phase-in, plateau, and phase-out structure based on your earned income and AGI:

• Phase-In: The credit increases as your earned income rises from $0, at rates like 7.65% (no children), 34% (1 child), 40% (2 children), or 45% (3+ children).
• Plateau: You get the maximum credit once earned income reaches a certain level (e.g., around $8,490-$17,880 depending on children and status; exact ranges are in the EIC Table).
• Phase-Out: The credit decreases as income exceeds the plateau, at rates like 7.65% (no children), 15.98% (1 child), or 21.06% (2+ children), until it reaches $0 at the income limits.

To figure it:

1. Use the EIC Worksheet (A for wage earners; B for self-employed/clergy) in the Form 1040 instructions or Publication 596.
2. Enter your earned income and AGI.
3. Look up your credit in the EIC Table (a large IRS table spanning earned income ranges from $1 to the limits, by filing status and children).
4. If earned income and AGI differ, use the smaller table value.
5. The IRS can calculate it for you if you provide required info on your return.

Examples:

• Single filer with one child, earned income $20,000, AGI $20,000: Credit might be around $3,800 (full phase-in but not max).
• Married joint with two children, earned income $40,000, AGI $42,000: Could be $6,000+ depending on exact table lookup.

How to Claim the EITC

• File Form 1040 and enter the amount on line 27a.
• If you have a qualifying child, attach Schedule EIC (provides child details).
• If previously denied the credit (not due to math errors), attach Form 8862 to verify eligibility.
• Use tax software, a tax professional, or free IRS tools like the EITC Assistant (irs.gov/eitc) to check eligibility and estimate.
• Refunds with EITC are delayed until mid-February for verification.

Common Mistakes and Disqualifying Factors

• Reporting incorrect filing status or SSNs.
• Over- or under-reporting income (e.g., forgetting self-employment deductions).
• Claiming a non-qualifying child (e.g., one who didn’t live with you enough).
• Exceeding investment income or AGI limits.
• Being a qualifying child or dependent of another.
• Prior bans: 2 years for reckless disregard, 10 years for fraud (requires Form 8862 afterward).
• Math/clerical errors (e.g., wrong calculations) lead to automatic adjustments without bans.
• Failing to attach required forms delays processing.

Avoid errors by double-checking with the EITC Eligibility Checklist in Publication 596.

Special Rules and Recent Changes for 2025

• Military/Clergy: Elect to include nontaxable combat pay; special self-employment calculations.
• Self-Only Credit: If your child doesn’t qualify (e.g., due to tiebreakers), you may still get the no-child credit if you meet those rules.
• Divorced/Separated: Custodial parent rule with release option.
• Foster/Kidnapped Children: Specific inclusions.
• Changes: Inflation adjustments increased limits and max credits from 2024 (e.g., max for 3+ children was $7,430 in 2024). No major structural changes, but tax reform under the One Big Beautiful Bill Act (2025) may indirectly affect related deductions—check IRS.gov for updates. Trump Accounts (new child IRAs) don’t directly impact EITC.

For personalized advice, use the IRS EITC Assistant tool or consult a tax professional, as individual circumstances vary.