My husband makes about 65k a year and has a child to claim as a dependant as well as depreciation from farm equipment etc. Last year he got a federal refund of about 2100. I only worked three months this year then drew unemployment. I have 2 kids that I get to claim on taxes. We didn't get married until the very end of July so less than half the year we were married. Would it be better if we filed a joint reurn and claimed married with three kids or to file seperate and me file for the unearned income credit on my two. I ask because what we get back is going to be a big part of a down paymnet on our new house.
2006-10-11 14:13:27 · 3 answers · asked by Martha S 4 in Business & Finance ➔ Taxes ➔ United States
Since you are now married, you can either file jointly or separately. The date of the marriage is irrelevant. You can run the numbers to see which way results in a larger refund.
However, in either case, you will not be eligible to claim Earned Income Credit for two reasons. First, if you file jointly, you make too much money. Second, if you file separately, EIC is not available for people that file married filing separately.
Another thing to consider, if you file separately, if one spouse itemizes their deductions, then the other spouse must itemize their deductions even if the deductions are less than the standard deduction.
It would have been better if you didn't get married. This way, you would have been able to file the way that you asked.
2006-10-11 14:31:54 · answer #1 · answered by Steve 6 · 0⤊ 0⤋
On preliminary scan of the information you provided, I would say Married Filing Jointly because of the 2 good reasons pointed out by the preceding answers.
Often, you're more likely to minimize your tax bill or increase your refund by filing jointly. But keep in mind, if you file separately you have to BOTH itemize, which is tricky if you plan to divy up the deductions, And you forfeit some key credits and deductions, including the:
Earned income tax credit (EITC)<-- a very important one
Child and dependent care credit
Adoption expenses credit
Hope and lifetime education credits
Qualified tuition deduction
Student loan interest deduction
2006-10-11 22:52:36 · answer #2 · answered by RamsGod 3 · 0⤊ 0⤋
As long as you are married as of the last day of the year, you are not allowed to file as single - you can file married filing joint or married filing separately. If you file separately, you aren't allowed to claim the earned income credit.
2006-10-11 21:33:55 · answer #3 · answered by Judy 7 · 0⤊ 0⤋