What are some Major tax deductions that can be used on a first year joint return?

Question

This is for a college paper. I am having problems finding the answers I need. My project is that I have to write a paper that gives 5 major deductions for a couple newly married and filing a joint return and also 2 tax credits. I have to describe that each of these tax deductions are and how they benefit the couple and which one would apply to the couple. This is so you understand why I had put the point of a first year joint return. All the help you can find will be appreciated. Plus I would like to know this stuff for myself as the new tax season is coming up. I am a returning student to college and feel a little out of place.

Answer 1

You should set up a couple with particular circumstances and write it up like a case study.

H and W get married January 1. H is employed, no children, W is unemployed, goes to school full-time, one child from previous marriage. H income is $50,000, W income is zero and was zero the previous year.

Deductions:

1. The standard deduction for Married Filing Jointly, which is greater than the standard deductions that either spouse could take earlier. W took no standard deduction last year, H took only the single deduction

2. Exemptions. W took no exemptions last year, H took one. Now they can take 3 exemptions, $3,400 each.

3. Spousal IRA for the Wife: She couldn't do an IRA last year, now she can have one because her spouse has earnings.

4. HSA deduction. They purchase family coverage under a high-deductible health plan. They get a deduction for establishing a HSA and contributing the maximum to it. Last year, the husband could only take a deduction for his individual policy.

5. Tuition and Fees Deduction: Last year no benefit because W has no income. This year H pays her tuition and they can take up to a $4,000 T/F deduction.


Credits:

1. Child Tax Credit. Will reduce their taxes by $1,000. Previous year there was no tax benefit.

2. Dependent Care Credit. Will reduce their taxes by up to $600 if they pay child care for the child while H works and W goes to school all year. Last year there was no tax benefit.


Write one or two paragraphs on each deduction or credit, filling in with details you can get on irs.gov.

Answer 2

Allowable deductions for joint returns are the same as for returns for single people, and there's nothing special about a first time joint return.

On a joint return of course you get twice the standard deduction and two exemptions, one for each of you.

Answer 3

Deductions have nothing to do with joint nor 1st year .
They are whenever . . .
Home mortgage interest on your primary residence
Property taxes
State Income taxes
Medical bills in excess of 7.5% of your AGI
Union dues
Tools purchased for work and Not reimbursed by your employers . . .

Actually , if you got married and haved not read the 1040 instruction booklet , you are wayyyyyy overdue .
It is online , do it SOON

http://www.irs.gov/

And you itemize deductions on schedule A .

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Answer 4

If you sold a home that you both lived in, (check the requirements exactly) you can EXCLUDE $500,000 of capital gain in the first year of a joint return. I did one last year for a client. AND you can do that every three years if you have two residences.... which is not unusual for people that make $1/2 mil gains on home sales. ;=D

Answer 5

Once you and your spouse file a joint tax return, you will allow a higher standard deduction and an additional personal exemption.