Really important tax questions..........?

Question

My husband and I just had a baby in april and I am wondering how to file taxes.

Do I file for the earned income credit?

the child tax credit?

both?

How does this work? I am not sure because I havent had to do it yet but we are suffering and I need to get my taxes done sooner.

Also when is the soonest I can file taxes? Do I have to wait to get our 3 w2 forms from work or can h&r block use our paystubs? Ive got every one of those since January 1st.


Thanks for the help. Please email all replies to me at [e-mail]

as I am not sure if I will be able to check back on here as easy as I check my email.

Answer 1

You and your husband should file a joint return, claiming yourselves and the baby. You will get an exemption of $3400 for the baby – that means that amount is subtracted from your total income before tax is figured. Then after you figure your tax, you’ll also get a $1000 child tax credit – that amount is subtracted directly from your taxes. It can only take your tax to zero, you don’t get any leftover amount back if you don’t owe that much.

Eligibility for Earned Income Credit depends on your earned income. If the total of all of your W-2s is under $35,241 for the year, then you’ll get something for EIC, if it’s over, you don’t qualify. How much you get depends on your income.

The child tax credit and the EIC are independent of each other, so getting one doesn’t change your eligibility for getting the other one also.

You, or H&R Block, can’t actually file until you have all of your W-2’s. They might do the paperwork from your pay stubs, but aren’t allowed to actually send in to the IRS. Efile, and have your refund direct deposited into your bank account, and you’ll get it within two weeks of when it’s submitted.

Answer 2

1. Wait until you get your 3 W-2s to file.
2. Have the preparer do your taxes both ways. MFJ should result in the highest refund for the two of you.

If your combined earned income is less than $36K, then you are possibly eligible for EIC. The child tax credit is $1000. First you use this to reduce your tax bill. If there is any left over and your combined earned income is more than 11-12,000, you may also get the rest back as an Additional Child tax credit.

3. No, you don't get private email service.