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8 Answers

How does someone on welfare with no income get a tax refund?

Asked by: sfbs 821 views YA Discussion

This the scenario in my husbands family. House is owned by brother #1 it is in his name, tax bill is in his name, utilities are in his name. It is a duplex, brother #2 and his wife live there also, they pay no rent and give brother #1 some money when they feel like it for utilities. Brother #2 has three children that he does not have custody of that he pays child support on, he and his new wife have a two year old daughter, and another on the way. The wife, bitching about the child support and the fact that their tax refund is taken for back child support came up with a bright idea, she went down to the court, used her dad’s address, claimed she was separated and now gets child support from the husband she still lives with at the duplex (she did this to reduce the support of the other children and yes it happened, he doesn’t make that much money). In addition to the child support, she also gets a bridge card, welfare money, medicaid and WIC. She has NO JOB, she has no vehicle, she has NO taxable income. She has some guy she knows do her taxes and gets back refunds bigger than mine (and I work my ass off). It is obvious to me that however she does it, it is fraudulent, but what is she doing? She does not qualify for EIC because she earned NO INCOME. This is the second year she has done this, last year she bought a 55 inch plasma TV, this year it’s a trip to Disney. Please do not respond and tell me I don’t know what I am talking about, that she must work, has income ect. because she does NOT. I have ran her numbers through one of the free tax programs and it comes up with zero refund, but yet here she is planning on how she is spending her refund this year, asking me about hotels at disney. Someone said she lies and said she makes money as a “homemaker”, I tried that in the tax program and it did give a refund of around $ 700, but she is getting thousands back not hundreds….cant go to disney with $ 700. It drives me crazy, I guess my mind is not “criminal” enough to figure it out and she makes me sick to my stomach.
Yes we know brother #1 should give these lowlifes the boot, but that is a whole other topic!
No she is NOT a student, no retirement or investment income either. And yes, that was the point of running her numbers in the tax program, zero income should be zero refund but yet she gets a refund, I am trying to figure out how she is doing it, or did you miss that part “A Hunch”? Can’t report it something when I have no idea how it is happening.

8 Answers

  1. LalaLilly0428 on Mar 02, 2013 Reply

    And this is why this country is so damn in debt. I feel for ya girl! I see it too, all the time. They must be doing something shady and lets just hope that one day they get caught up. Its a shame, it really is. This country punishes the hard workers and gives a free ride to those who are lazy. Should have voted Romney!

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  2. Bobbie on Mar 02, 2013 Reply

    Using all of your above enclosed information it sure does sound like some very serious tax fraud being done by the preparer of the 1040 FIT return during each tax filing season for this purpose.
    Hope that you find the above enclosed information useful. 03/02/2013

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  3. A Hunch on Mar 02, 2013 Reply

    It’s not true… I was following along until…
    She has NO JOB, she has no vehicle, she has NO taxable income. She has some guy she knows do her taxes and gets back refunds bigger than mine

    = a refund is from two things. a refund of your tax withholding overpayment and tax credits (earned income and educational are the ones “regular” people are eligible for)
    – she had no income so she did not pay any tax withholdings, so their is obviously no overpayment.
    – she has no income so she is not eligible for earned income
    – if she was a student she could be eligible for a $ 1000 credit for educational purposes with no income.

    But then it doesn’t sound like you are telling the truth either = “I’ve run her numbers through the tax program and it comes out zero”. If she had no income, $ 0 is the only number that would be entered… of course, her refund would be $ 0….

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  4. Carol T on Mar 02, 2013 Reply

    Unless she has her own business and is claiming self employment, she obviously is committing tax fraud.

    The big refund is most likely EITC which you are right, if she doesn’t have any EARNED income, she shouldn’t get it.

    If you think they committed tax fraud, report it. I know how you feel, I’m in the same boat with my ex and reported him and his scam.

    He was busted and now cannot claim EITC ever, he is paying the money back. It was that or jail.

    People who have a right to claim it should, the problem is there are a lot of people who either fraudulently claim or are ignorant to the credit and claim when they shouldn’t.

    Long story short, report it to the IRS and they will determine if fraud was committed.

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  5. Mr Ed on Mar 02, 2013 Reply

    One word. PARAGRAPHS!

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  6. CMDS on Mar 02, 2013 Reply

    Hey, if you don’t like her, you could get a bonus from the IRS for reporting her fraud and the guy she knows who does it….he might be doing it for a lot of people and you could get a nice snitcher’s incentive. No, I am not being tongue in cheek.

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  7. Judy on Mar 02, 2013 Reply

    She’s obviously lying, and committing fraud on many levels. When she gets caught she’ll be in major trouble, including a possible prison term. But until then she’ll figure she’s getting away with it, and enjoy her trips and TV. The good news is that the IRS, who is aware that there are tons of fraudulent claims, are doing a lot more audits and reviews to catch the fraudulent claims. If she’s claiming EIC based on undocumented “self employment income” she’s got a real good chance of getting caught this year.

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  8. HD on Mar 03, 2013 Reply

    more than likely she filed single head of household with 2 dependents and child tax credits, that would get her a refund of about $ 4,000+ even with no income. her chances of being audited this year are very high, the irs is cracking down on these deductions due to massive fraud last year. i hope she does get nailed.

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