Me: earned about $30k in '06. Spouse: earned about $9k, but has school tuition to deduct. Simply considering this info, which would be more advantageous (larger return): filing jointly or separately? Just looking for a jumpin off point here. Thank you!
2007-02-01 09:25:33 · 7 answers · asked by targethc 1 in Business & Finance ➔ Taxes ➔ United States
I believe jointly. Why dont you do it both ways and see which one is bigger.
2007-02-01 09:29:47 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Married Filing a Joint Return - If you are married on the last day of the year, you can file a joint return. This applies even if you are separated from your spouse and pursuing a divorce. Unless the divorce is final by the end of the year, the IRS considers you married, and you can’t file a return as a single taxpayer. If you were married for any part of the year but were widowed at year-end you file a joint return for yourself and your deceased spouse.
Married Filing Separately - This filing status almost never makes sense. The rare circumstances in which it can pay off usually involve a husband and wife with similar incomes who by splitting the income on separate returns can claim deductions that would elude them on a joint return. One often-cited reason for filing separate returns, for example, is if one spouse has significant medical bills. Such expenses are deductible only to the extent that they exceed 7.5% of adjusted gross income. Splitting income on separate returns might squeeze out a bigger medical deduction for one spouse, but only in very special circumstances would the tax savings offset the cost of skipping the advantages that come by filing a joint return. There are many factors to consider, some costly, before filing separately:
One spouse can’t claim the standard deduction if the other itemizes. If one itemizes, both must.
On separate returns, you can’t claim the child-care credit.
The $25,000 passive-loss allowance for active rental real estate investors, is not allowed on separate returns.
got it from www.expresstaxrefund.com
2007-02-01 17:59:15 · answer #2 · answered by john_zoltan 1 · 0⤊ 0⤋
Jointly. Filing separately might not come out a lot different financially, but at best it won't save you money, and is extra paperwork.
2007-02-01 21:59:31 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
There are very few instances where it will behoove you to file separately. You can run the numbers both ways, joint and separate, I would just go for the joint. Almost 100% that is the best route for you.
2007-02-01 17:35:03 · answer #4 · answered by smh60437 3 · 0⤊ 0⤋
I you use a tax software like turbo tax, it will evaluate both ways and tell you which one works to your advantage. You can do it on line at the library if you do not have access to it or the Internet.
2007-02-01 17:39:36 · answer #5 · answered by Wake Cobra 4 · 0⤊ 0⤋
The best way is to figure taxes both ways, but probably better with joint.
2007-02-01 18:03:19 · answer #6 · answered by Ovrtaxed 4 · 0⤊ 0⤋
calculate your taxes both way and see which one is better...probably married.
2007-02-01 17:30:27 · answer #7 · answered by miztiffany 3 · 0⤊ 0⤋