Do you think that people who receive benefits should have to show the benefits as income when filing taxes?

I don't know about using them as income, but certainly something should be done. I don't understand how some people can get more of a return than they actually paid in taxes. Seems wrong. Oh well, I guess since our government is debt free and has all the other needs of our country met with money left over why not give it out for free. Oh wait... We're not in good financial shape?

Actually Jane, it COULD happen. My husband & I have 2 children, only made less that $26K this year and we got back almost $8K from the IRS. Anyways, no I don't think it should. They are paying medicare taxes anyways which is paying for their medical. I think that Cash benefits should be included as income though since it's actual cash and not a card to be used on food purchases.

I think you should be able to get up to the amount you paid in taxes back at the end of the year. But, we paid in about $40,000 in taxes last year and we will be getting about $2000 back and that's only because we can claim the interest on our house and our baby. If I was getting $10k back I might not mind as much. Edit: Des, you can get back more than you paid in at the end of the year using the EIC and child tax credits - especially if you have 5 kids. If the woman made, let's say $20,000 last year, she definitely didn't pay in $10,000 in taxes - $10,000 in taxes would be at least $40,000 a year, at which point she wouldn't qualify for the assistance she is getting - poverty level for a family of 6 is $28,400 so in order to qualify for all that assistance she gets, she would have to make less than that a year. Edit2: Des, I agree that the benefits shouldn't be taxed, but I also think that it's unproductive to not only give her back all her taxes (which I think is fine - she is low income and could use all of her money) but to also give her some of someone else's tax dollars back? It makes no sense to me.

Well that particular situation paints a bad picture of the assistance program. I like to believe that those people are the minority and not the majority. I like to believe that. I personally feel, the whole system needs to be revamped. I firmly believe in a system that helps people who are need. I truly do. But the system as it is, is flawed. I think that should be just as important as any other thing this country is working on to be fixed. I don't believe the system as a whole has been revamped too much since it was instituted all those years ago. I want it to be able to help people in need, people who help themselves, and enable people to transition off of it. I want people to be able to not get sucked into a cycle. I still like to believe in the majority that do not abuse the system. It helps me sleep better at night. :-)

In my state you DO have to file your assistance as non taxable income on your state return. What bothers me is here in MN your refund can not count against you as an asset as long as you spend it before your next Household report form is due. Which means these people getting back a $10k refund are having to spend the money very fast and not using it wisely. Since vehicles, CD's, property, and snowmobiles/ATV's also count against you these people are buying clothing, electronics, and other items just to stay on assistance. That $10k in actuality is more than she is receiving yearly from assistance and could be put to use helping the mother instead of being wasted on frivolties. Here it isn't uncommon to see low income families buying a 54 inch tv with a tax return. If your living in an appartment with a 54 inch tv, playstation 3, and a blueray player should you qualify for assistance? My answer is no. Your no longer looking for help your looking for a free ride.

Wow, I didn't realize that was happening. I guess I live in a hole. Heck yes I think they should have to report all of it. When I was raising my first child (alone), I struggled. I didn't use assistance because I thought I should work hard and leave it for someone who may really need it. However, it never failed, I would go grocery shopping and buy my off brand hot dogs, mac and cheese and 1lb of hamburger. And, behind me would be someone with a bridgecard buying shrimp, t-bones and filets. I would get so pi**ed. And one day as I was leaving, I saw a lady pouring her pop out (that she had just bought), I watched her get the bottle return and buy cigerattes with it. Isn't that a crock. I really think that everyone should ahve to report income, no matter if it is assistance or not. Wy should anyone have a leg up on another!

What bothers me is I see how many thousands of dollars the hubby and I pay in taxes each year. And we receive barely any of it back. But then someone else who hasn't paid nearly as much taxes receives thousands more then they paid!!! Its not right. I can't help but believe that my money is going to them!!! I am all for assistance for single parents. I have a family member who is a single parent and works her butt off she deserves every dime she recieves... and doesn't get any assistance. But it bothers me that a married couples almost always gets way less back in taxes when nine times out of ten they are paying tons more each year. I don't understand it. We have a child too... why should the single parent get more money back because "they" have a child. When they are already getting financial help. (For those that are already getting plenty financial help) I agree some "need" the tax money. ***And no not all the money they "get back" is taxes "they" overpaid that year. *Its called "getting taxes back" so why/how should a person who hasn't paid that amount in taxes recieved that much "back"?

I don't think that the system should be changed because it helps needy families. I think that even if you claim all five kids, the max EIC would be for two kids. Then I'm assuming she'd file as Head of Household and get that deduction. It's meant to be a good thing for good, working people, so we can't change just because there are abusers. Edit: To anyone that thinks it's not fair, you have the right to your opinion. But look at it from my point of view. I have two children and an extremely sick husband. I pay all of the bills, rent, heating gas, electric, car payment, insurance, medical bills, food and any extras like gas for my vehicle or the one night a month I may go out to eat, clothes for my rapidly growing children, my husband's prescriptions. I live in Cleveland, the economy here sucks. I haven't gotten a raise in almost three years, I can't find another job and my husband's social security is pending. Now, I'm going to get almost $6000 back. I think I deserve this money. I work hard to support my family and I appreciate the money that I'm going to be receiving.

Well, I sort of look at it like this. That 10k will probably help benefit the kids in *some* way. She is a single mom with 5 kids, so no matter her reason for working (I'll pretend I didn't hear that she can't stand to be around her kids),she probably doesn't make enough to purchase clothes for 5 kids for 3 seasons a year. It might help her with birthdays and activities etc. I don't know. I don't think they should have to show benefits as income. Just because some people abuse the system, not all do. When Clinton was President, the laws were changed in our state that you could only get continuous benefits up until your youngest child was 5, you were going to school, or working a 30 hour a week job that offered health benefits. So I do think the government TRIES to put strict standards on welfare, but it is very difficult to monitor each and every single case. I like to think she will use that 10k wisely.