My husband is in the military and we are stationed in Texas. I don't work and we just had a baby. He is the only one bringing in the income. Does anyone know how much we will receive back for our son on taxes and if he can claim me as a dependent on his taxes!? Texas Tax laws please... I don't understand taxes and the way it works if I phrased something wrong please forgive me.
2007-11-29 14:17:10 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
A spouse is never a dependent, but you get all the benefits a dependent would give, plus a lot more, by filing a joint return. You can file a joint return even if all the income was made by one person of the couple.
For your son, you'll get a $3400 exemption - that means that much of his income won't be taxed - you'll get the same amount off for each of you, plus $10,700 for what's called a standard deduction - so the first 20,900 of his income won't be taxed. Tax will be calculated on whatever he makes that's over that. Then you'll get a tax credit of $1000 for the baby - a credit means the amount is subtracted from your tax - if your total tax is at least $1000 - if it's less, the child tax credit will wipe out the tax totally.
Congratulations on the baby - enjoy him! I'm sure that you are.
2007-11-29 14:51:20 · answer #1 · answered by Judy 7 · 3⤊ 0⤋
You should know that you folks have some advantages since your husband is in the military. If your husband served in combat zone, some of his income is probably not taxable. Your son brings personal dependency exemption of $3400 deduction and child tax credit ($1000). There is also the child and dependent care benefits credit, but it sound like you're taken care of your baby yourself. Earned Income Credit is good too. When you have time go to the IRS.gov website, you will be amased, how much info you can gather, just by clicking buttons on your keyboard. You (I suppose you're not a dependent of anybody else), your husband and son will have total of $10200 exemptions and $10700 standard deduction (I assume you file Married Filing Jointly). So there is a $20900 savings, which means will reduce your taxable income. There are also many other refundable and nonrefundable credits that you can use, if you qualify. The Texas state probably offers many credits that you can take advantage of, if you do some research.
Good Luck
2007-11-29 14:35:58 · answer #2 · answered by Q 3 · 0⤊ 0⤋
1. It is best if you file as Married Filing Jointly. You can't claim your spouse as Dependent. Your spouse is never your dependent. But you can file as Married Filing Jointly. Then you get one extra exemption deduction of $3,400 and one extra standard deduction of $5,350. Thus your total deductions (if you don't itemize) are $17,500.
2. You will claim your son as dependent. Then you get another exemption of $3,400. So on income up to $20,900 you don't have any federal tax.
3. When you have a child dependent, and your AGI is less than $34,001 your Earned Income Credit may increase. You will get Child Tax Credit or Additional Child Tax Credit.
2007-11-29 17:20:42 · answer #3 · answered by MukatA 6 · 0⤊ 0⤋
First of all Texas does not have state taxes. You will file state taxes from the state of your residence. You did not indicate what state you and your husband are from. As for as your federal taxes you will claim three exemptions for which you will get $3,400 each plus your standard deduction of $10,700 for using the "Married Filing Jointly" status.
2007-11-29 23:27:50 · answer #4 · answered by Gary 5 · 0⤊ 0⤋
Yes, both you and your son are dependents.
2007-11-29 14:25:51 · answer #5 · answered by walyank 6 · 0⤊ 5⤋