My husband & I got married in 2004 but were told by someone that it did not matter if he claimed me since I have no income. I am basically a homemaker since I am not employed. And since we have no children, I help my husband & his family with their business. Because the business they own is corporate, their 2005 tax filing has been extended and still under process right now. I was NOT claimed on my husband's 2004 tax returns but does it really matter?
2007-01-31 09:23:35 · 9 answers · asked by YCC 1 in Business & Finance ➔ Taxes ➔ United States
Thanx with all the help! Now I'm going to go punch my idiot of a brother-n-law who told me it was pointless to claim me!
2007-01-31 09:37:07 · update #1
You are his wife, not his dependent. Regardless, you still get the same exemption amounts and his income will be subject to lower tax rates when he puts your name on his return and files Married Filing Joint.
His 2004 return should be amended for a change in filing status because you were married in 2004. The government owes him and you money because you filed incorrectly which causes the government to overtax your joint income.
2007-01-31 09:32:01 · answer #1 · answered by Anonymous · 2⤊ 1⤋
It absolutely matters. Each spouse is allowed a certain amount for a personal exemption on the tax return ($3,300 in 2005). By not claiming you as a dependent, you've essentially just increased your taxable income by $3,300 in 2005. Also, how late is your husband planning on filing his business return? If it's not an S-Corp or partnership, the business tax return probably has nothing to do with your personal return. If it is an S or a partnership, he's way late with the filing.
Perhaps did you misunderstand that your husband didn't need to include you on the Form W-4, the form that you fill in to set up your tax withholdings? That would make more sense than someone telling you not to claim you on a tax return.
2007-01-31 09:31:17 · answer #2 · answered by SuzeY 5 · 0⤊ 1⤋
Yes it matters. Your best bet is to file a joint return - you'll get both exemptions, and the joint rates are lower than the married filing separately rates. Since you say your husband hasn't "claimed you" on earlier returns, I assume that's how he's been filing. If he's been filing either single or head of household, his filing that way has been illegal. If you've filed joint returns, then there's no "claiming" involved, you get both exemptions when you file joint.
If you had NO income of your own, then your husband could claim an exemption for you even if he files as married filing separately. That way you'd at least get both exemptions, but his tax rate would be higher than if you file jointly, so he'd pay extra tax.
If that same brother in law told you not to file a joint return, punch him twice!!!!!
By the way, you could file amended returns for 2004 and 2005, changing to joint filing.
2007-01-31 14:52:26 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
pusherhombre is correct. Your 2005 tax return should probably be amended as well as your 2004 return.
2007-01-31 11:16:00 · answer #4 · answered by STEVEN F 7 · 1⤊ 0⤋
Of course he can. That was what my dad did. My mom had no income. She was a homemaker too. So, he claimed my mom as a dependent. I don't know how it works, but you can contact the Internal Revenue Service.
2007-01-31 09:27:42 · answer #5 · answered by Anonymous · 0⤊ 2⤋
Your husband and you will file a joint tax return, that what is required for married couples.
2007-01-31 09:29:51 · answer #6 · answered by markos m 6 · 0⤊ 2⤋
You receive more than 50% of your financial support from him and therefore you are considered his dependent for tax purposes.
2007-01-31 09:32:16 · answer #7 · answered by Vakari 5 · 0⤊ 2⤋
he can claim head of household and get a bigger refund
2007-01-31 09:27:53 · answer #8 · answered by rachel 5 · 0⤊ 4⤋
Yes, you are his dependent.
2007-01-31 09:27:14 · answer #9 · answered by notyou311 7 · 0⤊ 3⤋