We were married in October 2006. My husband graduated from law school in May and had virtually no income for 2006. My income was around 35,000. He just informed me that he did not file his 2005 taxes, though he believes the government owed him money. I don't know if it is wiser to file together this year to potentially increase the amount of our refund, or if it is in my best interest to file separately since he failed to file taxes the previous year. Any advice would be greatly appreciated!
2007-02-21 02:35:11 · 8 answers · asked by mmgam0i0 1 in Business & Finance ➔ Taxes ➔ United States
My recommendation would be for him to file his 2005 taxes first. If the government owed him money then, they will still owe him money now. If he owes them money, he will have to pay penalties and interest, but most likely a small amount since it sounds like he's been going to school and not making a whole lot of money. Make sure he fully deducts any education credits he may have from 2005. Once he's filed for 2005, you should file for 2006 using the filing status married filing joint. If you file married filing separately he will lose his education credits but if you file together, you both will benefit from those credits. Generally, MFJ is a much better way to go than MFS; you will have a higher standard deduction ($10,300 as opposed to $5,150) and you'll have an overall lower tax rate. Have your tax preparer tell you what the result will be for each of you using MFJ and MFS, then select the one that is most beneficial to both of you. Good luck.
2007-02-21 02:50:23 · answer #1 · answered by Lilly 3 · 0⤊ 0⤋
He was in law school, but didn't file his taxes? Great, just great.
He should file his taxes asap for 2005. If he has a refund coming, he'll get it and won't pay any penalties. If he owes, he'll have to pay the back taxes plus penalties and interest..
Once he gets his 2005 return prepared, you and he will know if there's a problem. Even if he owes, this year's refund wouldn't be taken to pay the back taxes if he hasn't yet heard from the IRS regarding not having filed, but they'll be turning up pretty soon if they haven't already. You might as well file a joint return this year since that would probably save you money. If it turns out that he owes for 2005, you can file an injured spouse form with your joint return, and any part of the refund that's due to YOUR income and withholding wouldn't be taken to satisfy HIS debt.
2007-02-21 10:52:14 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
Nobody will be able to answer this because there are way too many variables.
Prepare your taxes both ways, separately and jointly, to see which is best.
Also, have your husband contact the IRS to see what he has to do to file his 2005 return late. Being proactive will help if the IRS computers kick out his/your 2006 return for an audit because it couldn't find his 2005 return.
2007-02-21 02:42:03 · answer #3 · answered by lunatic 7 · 0⤊ 1⤋
He desires to document for 2002 and 2005, and pay what he owes - with the aid of now there'll be extra quantities for interest and effects. additionally document 2003 - there should not be interest and effects, yet till you're able to do it with the aid of the next day, he won't get his refund the two, it rather is going to be too late. you mustn't be held in charge for his returned taxes, even nonetheless in case you document a joint return you will could document an injured substantial different style to maintain your share of the refund from being taken for returned taxes till he gets each little thing paid off with the aid of then.
2016-11-24 21:57:30 · answer #4 · answered by lacue 4 · 0⤊ 0⤋
Why not have your tax professional figure it up both ways? He can tell you what penalties would apply to you and how they would harm you, as well as which way is monitarily beneficial. And your husband should DEFINITELY file for last year--otherwise, the IRS will wait until the last minute and then charge multiple fees and interest.
2007-02-21 02:40:14 · answer #5 · answered by Crys H. 4 · 0⤊ 0⤋
Before he can file 2006 he needs to file 2005 regardless of whether they owe him money. Yes, it would be beneficial for you guys to file jointly. Having him gives you another exemption which will lower your taxable income.
2007-02-21 02:38:47 · answer #6 · answered by mypassions4life 5 · 0⤊ 1⤋
Have him refile 2005 and you married but file on different returns...
2007-02-21 02:38:49 · answer #7 · answered by De 5 · 0⤊ 1⤋
yes because u get more on your income and plus ur supposed to file seperately.......
2007-02-21 02:38:28 · answer #8 · answered by hortenbury_17 1 · 0⤊ 3⤋