He didnt even break even but we have kept every reciept for fuel and expenses and such,,, can someone please tell me the best and easiest route to go thanks
2007-02-02 08:42:14 · 3 answers · asked by jennyrainbows 2 in Business & Finance ➔ Taxes ➔ United States
It is very simple to file separately. But, it is not clear why you want to do so.
If you file separately, his business loss wil result in zero taxes for him. But, your income will be taxed at a higher rate than if you file jointly.
If you file jointly, his business loss can be used to offset your income. This results in a lower overall income level (lower taxable income for you) PLUS the tax rate itself will be lower since you are filing jointly. Overall, your combined tax bill will be lower if you file jointly.
I know this sounds complicated -- it is. You should consult a CPA or a certified tax preparer for professional advice.
2007-02-02 08:49:34 · answer #1 · answered by Allan 6 · 1⤊ 0⤋
You simply file two different returns one for you and one for him. On both 1040 forms you'd check the "Married filing Separately" boxes.
Filing seperate returns as opposed to a joint return almost always results in both of you paying more taxes. You should seriously look into the reasons as to why you want to file seperately.
2007-02-02 08:47:47 · answer #2 · answered by Brad S 2 · 0⤊ 0⤋
If he lost money, that could potentially offset part of your earned income, and lower your taxes.
Plus, he's getting zero benefit for his standard deduction, since he has no offsetting income.
I'd look at this another 5 times before I filed separately. It's bound to end up costing you more money in taxes that you shouldn't have to pay.
2007-02-02 08:47:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋