The other day, DPF posted this chart.
If you have even just one child you do not pay any income tax until you are earning $42,000! And you keep receiving WFF until you earn $74,000.
With two kids, then your family pays no income tax $50,000 of income. And you receive WFF until you earn $89,000.
If kid number three turns up, then you pay no tax until $56,000 and you receive WFF payments until you income exceeds $105,500.
It made me wonder, exactly how do the effective tax rates look when you figure in WFF? How deeply negative do the figure go?
- All children are under 12
- Qualifies for the in work tax credit (about $60 for most people)
- One partner is working
- All income from salary or wages
I went up to 5 children, at $5,000 intervals. Click on the chart for full size