We have always filed jointly in our taxes but my wife did not work in 2006 to take care of our 1 year old baby. What option(s) would allow us to get the best returns? Should we continue to file "married filing jointly" or should I file "married but filing separately" and claim both my wife and baby as dependents? We have a mortgage and student loans. Should my wife even file even though she made zero dollars in 2006? My income in 2006 was $70k. Any advice in maximizing our returns for this year would be greatly appreciated.
2007-01-12 05:39:03 · 7 answers · asked by kimoswabi 1 in Business & Finance ➔ Taxes ➔ United States
Since I assume that you were married on 12/31/2006, you can't file Head of Household; your only options are "Married Filing Jointly" (MFJ) and "Married Filing Separately" (MFS).
As far as which would be your BEST option, there's no way of knowing for certain unless you just crunch the numbers because there are situations where each option is the best.
But for the vast majority of married filers, MFJ is almost always the ideal choice! There are many form calculations that give the best results (i.e., resulting in lower taxes or a higher refund) when filing as MFJ (higher deductions, higher phaseouts, more available credits, etc). Check out the below link for another explanation about why MFJ is often preferable to MFS.
Also, remember that as MFJ you still claim any deductions (like medical bills, tuition fees, or mortgage interest) that your wife would have claimed if she filed separately. Particularly if she didn't have any income in '06, you get the best of both worlds: filing jointly with your wife gives you the calculation benefits of MFJ, doesn't add any taxable income, and gives you her additional deductions.
Like I said: make sure you calculate both ways to see if MFS might save you some money, but odds are that MFJ is what you'll want to choose. Good luck, congrats on the baby, and I hope you get a refund! :-)
2007-01-12 05:46:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋
As you are married, you can not file Head of Household.
You can file Married-Separately, but you can not claim your wife as a dependant. Spouses are never a dependent.
File Jointly and you will get the best result.
2007-01-12 06:03:07 · answer #2 · answered by Wayne Z 7 · 1⤊ 0⤋
married filing jointly is the best option especially since she did not work! You will get them both as dependents plus the child credit. The mortgage loan interest is an itemized deduction (as is RE taxes) The student loan interest is an adjustment (if it qualifies).
2007-01-12 06:10:29 · answer #3 · answered by extra_37 4 · 0⤊ 0⤋
Can't file Head of Household. Married Jointly or seperately. They are dependents if Jointly so of course do that.
2007-01-12 06:00:59 · answer #4 · answered by vegas_iwish 5 · 0⤊ 0⤋
Technically if an executor is appointed that individual could signal for the decedent in accordance to IRS instructions. If none appointed then the better half can signal for the decedent - the IRS does not recognize or truly care see you later as someone does it. Take your p.c... If a reimbursement is due type 1310 is needed then signatures develop into extra important. The resources and better half would want to split the refund if the resources does not visit the better half.
2016-11-23 14:21:10 · answer #5 · answered by vannostrand 4 · 0⤊ 0⤋
MARRIED FILING JOINTLY PERIOD END OF STORY!
2007-01-12 09:05:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If I were you I would claim Head of Household that way you get the most back .
2007-01-12 05:42:39 · answer #7 · answered by southernn_sky_2020 4 · 0⤊ 4⤋