Anyone else see this.....Congress considers tax credit for vacation travel

[horseshowmom]

As I understand it, this is a tax credit (which is not the same thing as a deduction). The credit comes directly off the amount of tax owed.

 

[mom2boys]

sbclifton is correct. The bill proposes a tax credit. A credit is a reduction in the amount of tax you owe to the IRS. That would mean up to $1,000 less in tax liability (the amount you owe). As far as reducing taxes goes, a credit is the most benefical to the taxpayer.

 

[TinkerbellRules]

I totally agree about giving credit since the attack! If they can't do that, they shouldn't give credit at all. Those people were the ones who really had the faith to keep traveling. We're leaving in 2 days with or without the credit, but it sure would be nice to get what everyone else is!

Also, it doesn't mean they are going to pass it.

 

[ceecee]

I totally agree.........it should be since September 11. Hopefully it will pass, what a nice surprise that would be.

 

[friskykitten]

When will they be voting on this? Anyone know? Or have they already voted on it?

 

[TinkerbellRules]

I heard this week while at WDW it will be retroactive to Sept 11!!

 

[KJMAX1]

I am really hoping this passes, and I think it will. Right now Congress and Senate are agreeing on most everything to do with giving back more money. The one thing I fear though is that since we are going in the summer, that the place will be PACKED!!

We are taking with us close to 11 people for my husbands graduation and Im thinking this would be a very good thing. Just to let you know how a credit works, we are using it for adoption as well.

Lets say that you owe less than 1,000.00 for you and your husband. Lets say its 800.00, you would be given the credit for 800.00 and the rest would be carried over for the next year making it 200.00. I wonder if its just for this year, or if they are going to pass it to be active for several years.

 

[Minnie's Mate]

Below is a link to the article on CNN about this proposed tax credit:

Travel Now America Act

It would only be available for travel through 12/31/01 according to the article.

 

[frost5000]

Ok I have a question, but last time I posted in a political thread I inadvertantly started a minor war. Please understand I have no intention of this. Let's say you get the earned income credit because even though you work full time, you are underskilled and don't make a whole lot of money. This means that you get a refund, and basically pay no taxes (believe me I'd prefer to make more money, live nicer and pay taxes). Could you still (if you were dumb enough to use your family's food money for about 6 months to take your kids to DW - oooh, look kids it's canned beans again tonight (lol)!!) use this travel credit - ie. would it become a refund? That would be really cool for those of us who are about sick of beans (but have great memories...)!!

 

[mom2boys]

Well Frost, IF the bill is passed into law, the credit will probably be a NON_REFUNDABLE credit. That means that it cannot take your tax liability below zero. With the exception of REFUNDABLE tax credits, tax refunds are just that - refunds of excess amounts paid to the government throughout the years.

 

[Laurajean1014]

Well, if the House is going to pass this, they better hurry, especially with a two month window for validation.

Personally, I hope it goes through, I have two trips planned before 12/31/01!

 

[Lynn-Marie]

Does anyone know if this is on track to be passed? I checked the congressional record and I don't see anything new added since 10/17.

 

[LoDivaLoca]

I haven't heard anything either......please, me too!!! Keep us posted!!!!!

HAPPY HALLOWEEN!!!!

 

[Dis-knee]

Bumping this up. Hope there is some new news on the tax credit!!

 

[Frannypooh]

Hello All!

I work for IRS and many employees are waiting to hear also.
I am right now teaching a class and the last draft for the 2001 tax from was done in Sept. Not alot of time is left before the forms come out but as soon as I hear anything I'll let you know! You can also check out irs.gov

Fran

 

[LoDivaLoca]

Cool - thanks Fran, please keep us posted if you can!

 

[B3LM]

Has anyone heard anything more about this?

Beth

 

[tink2dw]

Congress got blasted by other business that wanted a piece of it,too,the other business were screaming unfair advantage...

Then Congress got caught up in it's terrorist Legislation. And that all they wrote. Now they will be going home for Christmas.

So I wouldn't get excited about!! And don't plan on getting it!!