Just trying to investigate the Tax Laws and how they would affect us, when we marry. I am single and own a home, but have no deductions. Would the deductions I aquire out way the EITC she will lose? Will she lose the EITC? She has 1 child (11years). No additional children in our current plans.
2006-06-25 02:54:01 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
She will lose the EITC, however you could take advantage of the Child Tax Credit which is $1000.00 per child under age 17 that lives in the home. In addition you will get two additional exemption amounts that come off the top of your income. Look for Schedule A deductions.
I think it's wise to consult a tax professional whenever a "life changing" event occurs in one's life.
2006-06-30 11:24:32 · answer #1 · answered by lade40free 2 · 0⤊ 0⤋
Yes you do have deductions- you have the property tax and any mortgage interest on your home. You can run Schedule A and add charitable and medical deductions as well. If you don't qualify for Sched A deductions, dig for things that will make you qualify for them- give clothes away to charity and get a donation letter, etc. Since you make far more than she does, put all the prop. tax and interest on your form if you file singly, even if she splits the payments with you. It's a form of gifting. My tax atty. suggested this in our case.
Now, here is the way to see about your question: Get turbo tax or another program , and plug in all the numbers in two ways: One married filing singly- the other married filing jointly. Save each file when you're done - that's three of them! You, her, and you/her. Then you can compare the different numbers.
2006-06-25 03:05:13 · answer #2 · answered by Thom Thumb 6 · 0⤊ 0⤋
Yes, she'll lose the EITC.
If you own a home, how do you not have any deductions? Mortgage interest, property taxes, state and local taxes are all deductible when you itemize.
2006-06-25 03:01:01 · answer #3 · answered by TheOnlyBeldin 7 · 0⤊ 0⤋