Personal Exemptions?

Question

Okay...Im just trying to get a little info before tax season!

So, I am married and did not make any income this year...so, everyone says that we claim a persoal exemption?
Well, how do you do that?
Last year was the same way....but, they did not give me any money back....I dont think my tax guy knew what he was doing!

Please help!

Answer 1

Did you file a joint return last year? If you didn't and didn't have any income, there wouldn't have been anything to get back since you wouldn't have paid anything in - your tax guy didn't screw up.

If you are married and aren't working, you should file a joint return, and you'll get a personal exemption on the joint return for each of you. An exemption means that much of your income isn't taxed - or in this case, that much of HIS income isn't taxed.

You get money back if you have more tax withheld than you owe. It's like getting change from the grocery store if you pay with a $20 bill and only bought $12 worth of items - it isn't some kind of free money the IRS hands out.

Answer 2

You and your husband can file together. That would put give the return $10,700 in standard deduction and both $3400 exemptions for the two of you, as well as a lower tax bracket.

If you do not choose to file together, your husband can still claim your exemption (unless another taxpayer has the right to claim you, like a parent) because you made $0, but he would get only the $5350 standard deduction and higher tax rates and fewer credit opportunities.

By the way *how* did you and your husband file last year? If you filed jointly and didn't get any money back, usually it's because not enough money was withheld during the year.

Answer 3

You should have at least two peronal exemptions (for yourself and your husband). It is worth $6,800. By the way you can have last year's taxes look at again. Last Year's exemptions were worth $6,600. If there was a mistake then your 2006 taxes will be amended.