I'm trying to file my husbands taxes and I'm very confused about our filing status. Last year we filed Married Filing Seperately (and he was able to claim me as an exemption) as I had no gross income (I go to school and babysit regularly). In 2006 I worked, but made less than $3300, which according to law I wouldn't have to file since I made so little. Could he still claim me as an exemption even though I had SOME gross income?
I'm very confused and don't want to get audited, but I also don't want to lose out on money by not being able to be claimed as an exemption when it would be perfectly legitimate to do so. Please help me! :-)
2007-01-27 21:28:26 · 8 answers · asked by rjs6281 1 in Business & Finance ➔ Taxes ➔ United States
You should be filing a joint return with your husband. In nearly all cases you will pay the least amount of tax in total by filing Married Filing Jointly. It doesn't matter that one of you has little or no income, you can still file a joint return.
In fact, you can go back to the last 3 tax years and re-file an amended joint return for each of those years if it reduces your tax bill for those years. This will get you a REFUND for those years! (Once you've filed a joint return you can't change your mind and file separately, but you CAN refile a joint return after initially filing separate returns.)
Filing separate returns will virtually ALWAYS cost you more money. And for 2006 since you had income your husband cannot claim you as a dependent on his return at all on his separate return. Your gross income must be ZERO for him to claim you as his dependent on his separate return.
File a joint return! You will save money unless you are in an extremely unusual situation.
2007-01-28 00:24:22 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you were married in 2005, and your husband filed as "married filing separately" for 2005, he could claim your exemption only because you had no gross income, and you weren't filing a return.
If he would have filed jointly with you, it's possible that you both would have gained certain deductions and credits because of your schooling.
For 2006, you should probably both file together as "married filing jointly. Your personal exemptions would be combined as well as your income.
Figure your taxes both ways and do a comparison to see which is better way to file.
It is true that making just $3300 in regular wages, you are not required to file but your husband would not be able to claim your exemption if he files "married filing separately" because you had gross wages in 2006.
Also, if there were taxes withheld and taken out of your pay, it is to your benefit to file so you can get that money back.
If you were still going to school check out IRS publication 970, to see if you qualify for education credits, and deductions when you both file jointly.
IRS Publication 970
http://www.irs.gov/publications/p970/index.html
http://www.irs.gov/taxtopics/tc605.html
2007-01-28 14:41:57 · answer #2 · answered by AngeloElectro 6 · 0⤊ 0⤋
Money made from babysitting regularly IS taxable income. If you were babysitting regularly in 2005 and didn't report it, that's tax evasion. You might or might not get caught, but it's still illegal not to claim it and pay the taxes due.
And if you had ANY reportable income for the year, even if under the $3300 limit, then no, he can't legally take your exemption.
Why don't you just file a joint return?
2007-01-28 05:59:00 · answer #3 · answered by Judy 7 · 0⤊ 1⤋
Because you are married you can only legally file married filing joint or married filing sperate. If you filed seperate he shouldnt have claimed you on his return because I dont think that is lawful, because it should have been filed jointly to begin with if he wanted to have both your exemptions and a higher standard deduction. Also, if you have been baby sitting and receiving money I am going to assume you are self-employed and not receiving a pay check if thats the case than you are legally required to file if you have more than $400 in self-employment income. You really need to gather all the information pertaining to 2003, 2004, 2005, 2006 and see a tax professional. Also if my memory serves me correctly if you file seperate than you cant change your mind down the road and file joint, so you really need to seek professional help with this it might have cost you alot of money in taxes because you didnt know how to file.
2007-01-28 00:39:00 · answer #4 · answered by emeraldsky21 2 · 0⤊ 3⤋
Why are you not filing Married Filing Jointly? If you are married and not claiming yourself on a seperate return, then yes, he can claim you as an exemption.
2007-01-27 23:23:51 · answer #5 · answered by Velken 7 · 0⤊ 2⤋
Sounds like he still could claim you. You can check with one of the tax services, or get one of the software packages.
2007-01-27 21:33:21 · answer #6 · answered by Dan821 4 · 0⤊ 2⤋
Your problem is not his problem...
Make your own declaration and let him do his own.
If, in the future, something comes out from "taxes" , you can explain it.
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2007-01-27 21:40:34 · answer #7 · answered by Anonymous · 0⤊ 2⤋
Help, is a mouse click away.....
2007-01-27 21:36:15 · answer #8 · answered by Anonymous · 0⤊ 2⤋