Taxes. My wife and i have have a 2 year old son and i lost my job after 8 years. Ive been collecting?

Question

unemployment since 4/15/07. Is it better to file sperate or together? Meaning more money wise.

Answer 1

Together.

Answer 2

You are better off filing together. If you file separate tax returns, you will lose any tax credits that you may be entitled like the Child Tax Credit or Earned Income Credit.

Answer 3

file together....you can combine al of your charity work together and youll defenitely save more $$.
here are some tx-saving tips:
1. Keep all business-related receipts. Keep track of what the receipts are for, and save them in a safe place.

2. Deductions. Many people neglect to carefully look for, and claim, all the deductions to which they're entitled. By simply taking the standard deduction, you may miss out on other available deductions.

3. Take all applicable tax credits. For each child under the age of 17, there is up to a $1,000 tax credit. There are also various other credits, such as those available when you adopt a child or when you elect to claim a Lifetime Learning Credit.

4. Take a loss. If you’ve done well with your investments and are looking at significant capital gains, prior to year-end is the time to offset some of those gains by selling a losing venture. Also, remember that you can carry forward up to $3,000 from previous years’ losses.

5. Consider tax-free investments. Returns are not very high, but if you're looking for a safe, tax-friendly investment, consider tax-free government or municipal bonds, among other such investments. This type of investment is particularly good for a high-income individual.


6. Remember charitable donations. While donations should not be made simply for tax purposes but for philanthropic reasons, you can always make a couple more at the end of the year to lower your tax bite. Remember to get receipts.

7. Gift if you can.


You can give up to $12,000 away tax-free to each person you choose. This is typically for retirees with significant assets who want to gift money now, rather than leave it for estate taxes later.

8. Max out your IRA or other retirement plan contributions. Of course, by doing so you're assuming that your personal income will be lower when you withdraw the money. While that may or may not be the case, it’s safe to say that, if there are a number of years until you start taking distributions, the tax laws will likely change many times over between now and then — hopefully in your favor.

9. Put your (over 14-year-old) children on the payroll. By having them do some work for you, you’ll be able to shift some of your income that would be taxed at a higher rate to their lower tax bracket without being hit with kiddie taxes. Be careful, however, because college financial aid could be affected by their income.

10. Double-check your work. Errors in tax preparation and on tax returns account for millions of dollars that taxpayers could have saved every year. Remember to double-check everything.

more:
http://www.nrilinks.com/Finance/TaxInfo/TaxSaving/Top10Strat.htm

Answer 4

Which state? Community property states negate the advantages. Also depends on (1) her income and (2) your income before 4/15+ your unemployment ( and withholding if any). Generally filing separate only makes sense if your combined incomes is over $250,000 and one of you made considerably less than the other.

Answer 5

In your case, it's better to file together because there is an earned income credit you can qualify for and there is a child tax credit you can claim. If you file separately you can't claim either one of those credits. You may want to check with a tax adviser to see what state credits you may qualify for. (Each state is different)

Answer 6

Together absolutely. You will lose your $1,000 child credit for your son if you file separately. You will also lose any earned income credit that you are entitled to.

Answer 7

If you file separately, your wife can still claim the child tax credit.

It's the child CARE credit that MFS filers can't claim.

Answer 8

Probably better to file together but consult an accountant just to be sure.

Answer 9

Together, because of the child tax credit.

Answer 10

seems such as you're in a no longer trouble-free spot. i might seem into putting your son in daycare. Do you have the different kinfolk that would desire to observe him? i think of quiting her activity might desire to be the final hotel as a results of fact its so no longer trouble-free to locate a job suitable now that i think of that persons who do artwork might desire to count quantity their advantages. i might seem into affordable yet stable daycare. there is daycare obtainable for low earnings human beings. Please dont take offense to that I dont comprehend the completed concern and that i'm no longer saying you're low earnings yet there is classes obtainable which will help people who cant arise with the money for daycare. in case you lived in Arizona i might say that i might watch your son as a results of fact i comprehend circumstances at the instant are not trouble-free. Weigh out all the specialists and cons in the previous you're making a extensive decision like that as a results of fact as quickly as she quits her activity who knows how long itll take for her to locate a sparkling one. Goodluck!

Answer 11

Together, separately is expense and unusually only if you can't find the other person or if they are committing fraud so you don't want to sign the return.