My husband and I got married a year ago and filed our income jointly this year. Before I got married I used to get back a hefty sum back from the IRS, because I do not declare any dependents. This year we had to send the IRS $5000 just because we got married. Anyway, time went by quickly, we haven't changed anything in the way we pay our taxes. On top of that, I got good bonuses this year and so did my husand. I am fearing that they are going to panalize us this year because we probably end up owing more. BTW, we do not really have a significant income on my husband's side because most of his income goes to his ex wife (Alimony). How do I check our accurate current situation? Can I do it myself without an accountant? I do not want to contant the IRS. I dont want to "wake the bear up" if I don't have to.
Financially, getting married doesn't make sense!!
2007-10-23 01:09:23 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Redo your 2006 taxes because this doesn't sound right. Getting married does not cause your taxes to go up under the circumstances you describe.
Is your husband deducting the alimony he pays? Does your husband have the correct amount of withholding taken from his pay so that he pays his share of the income taxes?
If you cannot see why you paid the $5,000, have your 2006 return checked by a prosfessional before you do your 2007 return.
Bonuses usually have 25% withheld for taxes so that should not be a big problem unless you are in a bracket higher than 25%.
2007-10-23 01:50:32 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
You must have pretty high income, otherwise your total tax filing as married should have been about the same as filing single if nothing else changed much. Of course, you say that YOU always got a lot back, but don't say how your spouse used to do. If he also used to break even or come close, or get a refund, and your total income isn't over around $140K for the year, sounds like something is wrong. And if your joint income is over that, and you didn't change anything about your withholding but got large bonuses, you could end up owing even more this year, and also be subject to penalties for underwithholding. They probably withheld 25% from the bonus, which if your income is high might not have been enough.
If you'll post again with more detail, someone can probably give you a better answer. For last year show total income for the year, total withholding for federal income tax, amount of alimony paid, info on any dependents, whether you itemized and if so how much your deductions totalled, any adjustments to income.... and same info for this year.
2007-10-23 11:52:03 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
I don't know why you would have had to send the IRS $5000 just because you got married - I've never heard of that. As long as you're having enough tax withheld, you should be fine. In fact, his alimony payments should reduce your combined AGI (adjusted gross income). The only things that could possibly hurt you are 1) if your combined taxable income is enough to move you to a higher tax bracket, and 2) if you don't have taxes withheld from your bonuses - this raises the income without an increase in taxes paid in, so it upsets the balance. I would advise you to see an accountant (NOT one of those rapid refund places, but a real CPA) and let them go over your finances with you. That will put your mind at ease and also ensure that you and your husband are doing all the right things (as far as the IRS is concerned). Don't contact the IRS - they can't really advise you anyway. But don't worry - just getting married does not "wake the bear up" - there are too many new marriages nationwide each year for the IRS to pay attention.
2007-10-23 08:23:00 · answer #3 · answered by Amanda M 3 · 0⤊ 0⤋
If you are married on the last date of the year, your status can only be Married Filing Jointly or Married Filing Separately.
This is from IRS publication 17: Your Federal Income Tax. Tip. 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.
When you file as Married Filing Jointly, then to save your refund amount, you can file form 8857: Request for Innocent Spouse Relief.
Read IRS publication 971: Innocent Spouse Relief.
If you have been using some tax software, then you can do your returns yourself. Or once you do it yourself then you can have some expert to review it.
2007-10-23 08:36:26 · answer #4 · answered by MukatA 6 · 0⤊ 0⤋
The tax code still has "the marriage penalty" written into it... But to cause a difference like it did in your situation seems extreme. If you both have 2 exemptions claimed on your w-4 without significant income outside of your jobs, you should be set up for a slight refund every year. The wildcard in this situation seems to be your husband. Before you were married did he used to receive a refund or owe taxes at the end of each year? What are his exemptions claimed on his w-4? Was there some other event that transpired during the year? Something that cranked up your income outside of you employment?
2007-10-23 12:05:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Its not a question of owing more, its a question of when you pay it - by withholding during the year or when you file your returns. Check your and your spouse's withholding to insure you've got the correct filing status and number of exemptions.
When you prepare your 2007 tax returns, you can run them both ways - married filing jointly and married filing separately to see which results in lower taxes (usually the joint return is best).
Recheck last year's return to be sure you didn't make a mistake. If you did, you can file an amended return.
2007-10-23 10:30:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋