I don't know if I would get more money filing seperate we never did. He only worked 1/2 year 31000.00 but, we refinanced with cash out. Is that cash earned income? Thanks
2007-03-04 22:04:38 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The proceeds from refinancing are not taxable income.
From your question, it appears that you individually have no income to put on your tax return. You will not get a refund if you file by yourself.
You can choose to not file at all, or file a joint return with your spouse.
With income of $31,000, if you file a joint return, you will get a $1,000 credit against tax owed from the Child Tax Credit. You will also get a small amount of Earned Income Credit, which is disallowed on a separate return.
So, file jointly or not at all.
2007-03-05 02:07:53 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
Cash out on the refinancing is not taxable - it's a loan, and will have to be paid back.
If you weren't divorced by the end of 2006, you can file a joint return if you can agree to do so.
If you don't file a joint return, and didn't live together at any time after June 2006, or if you were divorced as of the end of 2006, then you're eligible to file as head of household if your daughter lives with you. Otherwise, you'd file as married filing separately.
2007-03-05 09:32:18 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
If you lived apart from your spouse for all of the last half of 2006 and paid more than half the cost of providing a home for a dependent child, you can file as Head of Household. OR if you were legally separated from your spouse on or before 12/31/2006 you can file Single or HoH as apropriate. Otherwise your only choices are Marrief Filing Jointly or Married Filing Separately.
The cash-out re-fi is not income. It's just proceeds from a loan and is not taxable.
2007-03-05 06:17:58 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
honestly your best bet would be to go to Hand R Block, they well do your taxes and if you are not happy with the out come you can leave there, before they file your return and not have to pay them, i have been going to them for the last ten years, even though i have a degree in accounting, i would rather let them do it and get the head ache
2007-03-05 06:08:37 · answer #4 · answered by Lazrus 6 · 0⤊ 3⤋