Amended tax return help please!!!!!!?

Question

I filed in 2005, claimed my 2 kids and wife as dependants. Lately, I was told that since I claimed my wife as a dependant, and didnot file as" married filing jointly", my status is not right.Is it true? My wife never worked, should I file amended return and make the status change, or it doesn`t matter. Thanks for help.

Answer 1

You should amend your return, if anything, to raise your standard deduction. Married Filing Jointly is the highest standard deduction you can claim. You might be due for a bigger refund. If you accidentaly filed Married Filing Seperate:
Your tax rate generally will be higher than it would be on a joint return.
Your exemption amount for figuring the alternative minimum tax will be half that allowed to a joint return filer.
You cannot take the credit for child and dependent care expenses in most cases, and the amount that you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 if you filed a joint return).
You cannot take the earned income credit.
You cannot take the exclusion or credit for adoption expenses in most cases.
You cannot take the education credits (the Hope credit and the lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction.
You cannot exclude any interest income from qualified U.S. savings bonds that you used for higher education expenses.

The following credits and deductions are reduced at income levels that are half of those for a joint return:
The child tax credit,
The retirement savings contributions credit,
Itemized deductions, and
The deduction for personal exemptions.
Your capital loss deduction limit is $1,500 (instead of $3,000 if you filed a joint return).
If your spouse itemizes deductions, you cannot claim the standard deduction. If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return.

If you filed Head of Household or Single, you adversly affected lowering your taxable income which, in turn, not adequately lowering your tax liability.

Answer 2

You didn't say exactly how you filed, but if you were legally married on December 31st 2005, then you could not file as Single. You could file as Head of Household, but only if your spouse did NOT live with you at any time during the last 6 months of 2005. So, as you expect, you should have filed as Married Filing Joint. In this case, your wife is NOT your dependent, she is you spouse...just as it says on the top of the 1040. Your children are your dependents. Had you filed like this, chances are you would have had a better refund.

So, please, amend the return post haste and get that better refund. Even if, for whatever reason, you end up owing, you should still amend the return as Married Filing Jointly...but quite frankly, I can't imagine any way you would end up owing more.

Hope this helps :)

Answer 3

If you are married you should either file married, filing joint or married, filing seperate. If you wish to claim your wife use the married, filing joint box. That gives you a standard deduction of 10,000 for 2005. You put your children in the dependants box and go from their. You shot yourself in the foot by not doing that on the original return. Simply fill out a 1040X reflecting these changes.

Answer 4

You can not claim your wife as a dependent! The proper way to file would have been MFJ. It doesnt matter whether she worked or not. You should amend your return. You cannot file as head of household or single if you are married, it is illegal.

Answer 5

If you filed as married filing separately, then what you did was legal, but you almost surely would have paid less as married filing joint - you can amend your return to become joint and likely get a refund. If you filed as any other status like single or head of household, then your filing was illegal and you should amend to correct it - mfj will almost certainly give you a refund.