I am filing married this year-should I file jointly or separately since my spouse is in the military and I was in college and we lived apart the entire year? Also, so far on turbo tax it is telling me I get no state refunds and a very low federal--is this correct and is it because I am now married whereas before I always got a higher federal refund and state refunds?? How come it will not let me enter in educational deductions just because I am married filing seperately?
2007-02-24 06:03:51 · 4 answers · asked by crackermelons 3 in Business & Finance ➔ Taxes ➔ United States
You will almost always pay less tax by filing a joint return with your husband. You do NOT need to live together to file a joint return.
If you file separate returns, not only are the tax rates higher but you lose out on many deductions and credits that you would qualify for it you file a joint return. Turbo Tax (or any other tax prep software) won't allow you to claim any of those on separate returns. Earned Income Tax Credit, educational credits and deductions, Child Tax Credit and the Additional Child Tax Credit are all lost when you file separate returns.
Married taxpayers filing separate returns pay the highest taxes, higher than Single taxpayers even. That's why your refund is smaller if you file separately than if you were still Single.
2007-02-24 06:11:50 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Married filing separately is not the best way to go for a married couple. You cannot take education credits with that filing status and your overall tax rate is higher, which is probably why you're not seeing as much of a refund as you expected. Try doing married filing joint and see how much better you will do. Even though you lived apart because of school and the military, you are still entitled to file married filing joint.
2007-02-24 14:09:10 · answer #2 · answered by Lilly 3 · 0⤊ 0⤋
(1) Please spare yourself the agony of using TurboTax. IMO, it sucks, & your return will probably be WRONG.
(2) Almost universally, married-filing-jointly is the best filing status.
(3) You may get a smaller refund now, but your family's income is probably significantly higher than it was when you were on your own, so that is not really a relevant consideration.
(4) Many libraries & colleges have free tax assistance events. Go to one, if you need help. Or hire a CPA, if you can afford it. Just DON'T go to H&R Blockheads or some other loan sharking company masquerading as a tax preparer.
BTW, a big refund means you loaned money to the gov't. during the year. It is not a good thing.
2007-02-24 14:11:38 · answer #3 · answered by Tom's Mom 4 · 0⤊ 1⤋
If you can file a joint return, it's almost always a good idea rather than filing separately. As you have discovered, education credits are one of the many things that you can't take if you are married filing separately.
2007-02-24 19:12:33 · answer #4 · answered by Judy 7 · 0⤊ 0⤋