i made about $69,000 this year, i'm in the 25% tax bracket. i'm going to deduct about 39,000$ in mortgage interest & prop. taxes, putting me at 30k taxable income. what's better for my refund? i also had a child this year, i have a stepdaughter, and my wife had no earnings.
2007-12-19 07:21:19 · 4 answers · asked by Mr. ______ 1 in Business & Finance ➔ Taxes ➔ United States
In addition to the $39K in itemized deductions by filing MFJ you will get 2 exemptions and 2 dependent deductions. That will reduce your taxable income by another $13,600. Your marginal tax rate is 15% rather than 25%.
Based on your question, you would pay much more tax if you filed MFS.
2007-12-19 08:01:39 · answer #1 · answered by taxreff 7 · 1⤊ 0⤋
married joint
Filing a separate return provides relief from joint liability for taxes. However, married taxpayers who file separately are not eligible for many tax deductions and credits, and have higher tax rates. In general, it is more advantageous to file a joint return.
2007-12-19 15:30:23 · answer #2 · answered by Anonymous · 1⤊ 0⤋
If your wife isn't working it would be stupid to do anything besides Married-Filing Jointly.
$39k in interest on only $69k in income for 4 people???? You may want to look in to downsizing that abode.
2007-12-19 15:30:48 · answer #3 · answered by Wayne Z 7 · 3⤊ 2⤋
married joint is always better
2007-12-19 16:13:55 · answer #4 · answered by Anonymous · 0⤊ 1⤋