For the last many years I have received a full refund on federal and state income taxes due to my numerous deductions (HOH, 2 little ones, myself, etc.). Now I'm married. What's the best way? Joint or seperate? He's a farmer - he's at a loss this year due to the drought and will not be able to show any profit. Will I still get back a full refund if I file seperate or will I lose that since I'm not longer head of household and single?
2007-01-01 01:49:12 · 3 answers · asked by Greywolf 6 in Business & Finance ➔ Taxes ➔ United States
(It took me several minutes before I finally inferred Head of Household; additionally that you're female.)
Generally, filing joint (as opposed to separate) is the more advantageous way to go; farmers, I think, enjoy additional advantages which I read about, but can't cite from memory.
What I would suggest is you test each filing status, trying the joint status first, believing that that is more advantageous to you. Without knowing more details it's hard (to me) to project what your bottom line would be. (and I don't want your personal details; I have enough details to manage -- tax wise)
I'd definitely suggest you get Publication 17 (free) from the IRS -- the booklet that covers most everything. There's some probability you could get all your withholding back and even have a loss carry forward. It will hinge on all the particulars/numbers.
Good Luck; Happy New Year!
2007-01-01 03:00:19 · answer #1 · answered by answerING 6 · 0⤊ 0⤋
You have two choices; Married Filing Jointly (MFJ) and Married Filing Separately (MFS). The later is rarely a good idea. You are prohibited from filing HOH if you lived together any time in the last six months of the year. The farmer thing will make your return a bit more complicated but you should still get the same or greater refund if his farming activity was at a loss. You should see a tax professional as they will likely save you more money than they charge.
2007-01-01 03:22:59 · answer #2 · answered by ? 6 · 0⤊ 0⤋
Being married does pretty much eliminate you single head of household status. You can check the forms and wlook it up in books that are readily available at your library, but normally filing separate returns is not beneficial for either party. It sounds like you have a modest income to begin with and any benefit from filing separate returns would pretty much be cancelled out by the standard or itemized deductions that you can take jointly.
2007-01-01 01:56:17 · answer #3 · answered by fangtaiyang 7 · 1⤊ 0⤋
It is almost never a good idea to file seperate, you will pay more in tax. In fact, if you file joint and he has a loss from the business, his loss will offset your income and may generate a better refund. I've written about these types of tax saving opportunities in my book Winning in Biz and you can read more about it at www.wininbiz.com
2007-01-01 02:19:48 · answer #4 · answered by Ron San 2 · 1⤊ 1⤋