My husband and I need to know what is best for us to do.For about three months he did not get taxes taken out of his pay because he filled out something wrong.Within that time he made maybe only 4000 dollars.I didn't make much last year maybe about 4000 in total(had a baby).I know he would have to pay back taxes but would it effect us dramatically?Should we file seperate to save money or would it be better to file together?we also have a daughter that we will claim.Is there a tax credit for school also?Its a community college, but doesnt that count for like a hope credit or something of that nature? I just would like to know what would be better in our situation.I read in another post that by us being married and filling togeter in some cases can eliminate taxes owed because of the tax credits you get.just need help
THANKS
2007-01-30 15:15:37 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
No don't file separately that is the worst thing to do. file together. Your daughter tution is a credit that might just offset the taxes that were not with held from your husbands pay. If she is still a freshman or a sophmore she you will get the hope credit worth upto $1500 (i think) also if you just had a baby in 2006 you will get the child tax credit worth $1,000 in total you may have $2500 in credits that could help with the missing withholdings of pay.
2007-01-30 15:24:21 · answer #1 · answered by maria169 2 · 0⤊ 0⤋
Married filing joint is almost always the best way to go. Esp with children. There are credits that can be received from having children that may not be available if you file separate and the tax is almost always higher for separate.
The school thing is available as a hope credit or a lifetime learning credit. Talk to your tax person and they should be able to look at it and tell you which would work more for your benefit. Its a Form 8863 that is used.
You can check out the website for the IRS and look at forms and instructions and find some info.
www.irs.gov
2007-01-30 23:26:13 · answer #2 · answered by Ladybugtjc 2 · 0⤊ 0⤋
File joint.
The Hope Credit is available for students at an accredited community college.
Assuming the daughter in community college is over 16, you can't get a child tax credit for her, but you can for the baby. That's $1000 off your taxes.
Be sure to check whether you're eligible for the Earned Income Credit. With two dependent children (the one in college and the new baby) your joint income can be up to a little over $38,000 and you'll still get something from it.
2007-01-31 00:52:56 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Are you telling me your husband only makes less of 16000 per year? If thats the case you can get EIC. Nah file jointly. And yes Hope credit can be claimed for the first 2 year of college if you were enrolled at least half time. After that its the lifetime credit. It doesnt matter if its community college or not. Go buy Turbo tax (the cheapest one) and estimate what this would be. You can also download it.
2007-01-30 23:27:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋