Me and my wife both work and have a daughter. Now she makes about $7000 more a year than me. When tax time comes around we file joint married is there a benefit? Who can claim in order to get more money back with the income tax credit for our daughter?
2007-08-30 12:58:09 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Filing a joint return almost always costs you less total tax that filing as married filing separately. And I'm not sure what you are asking about Head of Household, but you can't file that way in any case.
On a joint return, it's not that one or the other of you claims your daughter, she is claimed by the two of you together. If she's your dependent, you will get a $3400 exemption for her, and if she's under age 17, you'll also get a $1000 child tax credit for her.
2007-08-30 13:09:34 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
If you are married on the last day of the year, your filing status can be Married Filing Jointly or Married Filing Separately.
For the Child Tax credit the AGI limit for Married Filing Separately is about $57,000 and for Married Filing Jointly is about $1,14,000.
Tip for IRS: If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Choose the method that gives the two of you the lower combined tax.
2007-08-30 20:28:16 · answer #2 · answered by MukatA 6 · 0⤊ 0⤋
Head of Household is a different filing status than filing married. If you are married and have lived together between July 1 and December 31 you can only file a Married Filing jointly or Married Filing Separately.
2007-08-30 20:04:38 · answer #3 · answered by ? 6 · 0⤊ 0⤋
You're married and living together. Neither of you can legally be head of household. Head of Household is for single people and certain separated people who are supporting children. You're only options are Married Filing Joint and Married Filing Separate. By filing Married Filing Separate you forfeit some credits.
2007-08-30 20:06:10 · answer #4 · answered by shoredude2 7 · 0⤊ 0⤋
Married persons who live together at any time in the last 6 months of the year cannot file as head of household. Only unmarried persons, legally separated persons with a decree of divorce or separate maintenance, and persons who lived apart from their spouses for the last 6 months of the year and meet other criteria can file as head of household. This is in addition to the other criteria that all persons (including those who have never married) must meet in order to file as head of household.
2007-08-30 20:08:34 · answer #5 · answered by StephenWeinstein 7 · 0⤊ 0⤋
If you and your wife files jointly the tax returned payment go to both.
2007-08-30 20:06:53 · answer #6 · answered by Anonymous · 0⤊ 0⤋