Married Filing Jointly Deduction 2009
Question: 2009 tax calculator………………?
I am trying to figure out an estimate of what I will recieve back on my tax return. My husband and I got married this year so we will be Filing Jointly. I will end up making about 25000 after tax and my husband about 40000. We also bought a house this year so we will be getting the tax credit for that. We have 1 daughter and will be claiming about 1500 in daycare expenses. I can not find any calculator that doesn’t want all kinda of federal tax deductions and blah blah blah… anyone know How I can estimate this or find a sight to do it?
Answer: There are lots of factors which influence your total refund amount. However, there is a calculator available on the IRS website. Here is it
http://www.irs.gov/individuals/page/0,,id=14806,00.html
Just follow the link and input all your information.
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Question: Married Filing Jointly. How does the $10,700 deduction apply to our income tax?
According to the 2008 tax rates & brackets for “married filing jointly with combined income of $105,000,” our tax is $8,962 plus 25% of the amount over $65,100.
This comes out to $8962 + $9975 = $18,937.
Is the $10,700 deduction applied to the $18,937 or is the deduction subtracted from our gross income of $105,000?
Also, we plan on buying a home in Jan/Feb 09. If we paid a total of about $20,000 in mortgage interest next year, will there be a significant tax benefit? Assuming our income is unchanged and we have no other deductions or allowances. Thanks.
Answer: From your total income you will subtract certain deductions such as student loan interest and IRA contributions if they apply to you. From that number you will subtract the standard deduction of $10,700 plus the one personal exemption of $3500 for each member of your household. Assuming there are just two of you, your Taxable Income would be $105,000 – 10,900 – 7000 for a total taxable income of $87,100. The tax on $87,300 would be $14,469.
More importantly is your statement about buying a house. Under the new tax law just passed if you purchase your first home between 4/8/08 and 7/01/09 you are eligible for the first time homebuyers credit. This credit if a refundable credit of up to 10% of the purchase price of the home or $7,500 whichever is smaller.
Because you are purchasing this home in Jan/Feb 09 you have the option of claiming the credit on either your 08 or 09 return. So, even though you didn’t close by the end of the year, you could still claim the credit. Just make sure you close on the home before you file the return. If you don’t you would be able to amend the return to claim the credit.
Here’s the catch. The credit needs to be repaid at the rate of $500 per year for the next 15 years. This amount will come out of your future refunds or added to your future liability.
To answer the last part of your question, yes, $20000 in mortgage interest would have a significant impact on your next return.
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Question: How do married couple file joint tax return if both are gambler?
Assume that my wife gambles to the same extent as I do. Also assume that we file a joint tax return. If my wife has a large net gambling gain for the year and I had a large net gambling loss, can we combine our gambling transactions and use his loss to offset her winnings? What are the IRS laws that apply?
Answer: Each of your winnings and losses stand on their own. The combined winnings go on line 21 of Form 1040. Each of you then figures your portion of deductible losses limited to your actual winnings and the total goes on Schedule A as a miscellaneous itemized deduction. This misc deduction is not subject to the 2% floor.
Keep in mind that the IRS is likely to audit your return. They will expect to see detailed records and receipts for all gambling activity. Your records must include all gambling sessions, casino name and address, machine or table numbers, etc.
Example:
You: Won $20k & lost $50k.
Wife: Won 100k & lost 20k.Gambling winnings on line 21: $120k
Schedule A loss: $40k. $20k for you (limited to your winnings.) and $20k for wife (her actual losses since her winnings were higher.)
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Question: 401K to Roth IRA conversion – Penalty and tax implications?
I am 39 years old and Filing Taxes As Married jointly. My wages were 60K in 2009 due to unemployment. My AGI will be about 100K from now onwards. Is this a good opportunity to convert my 401K from previous employer into Roth IRA as I will be in lower tax bracket? Will there be any penalties as the conversion is from before-tax to after-tax contribution?
Answer: If it is done correctly, then there will be no “penalty”. There will be ordinary income tax on the amount converted. In your case, the federal tax rate will be 25%; the state tax rate varies from state to state.