Filing Status Exemptions
Question: What is the correct filing status for a married couple with one child and one on the way?
Hi! I live in Louisiana, and we are so confused! We are trying to figure out the best way to file our exemption. Right now we have it as Married and 2. Is this right? My husband is the only one who works. I stay home with our son and am pregnant, baby not due til 08. What I”m looking for is, to get more money in our weekly take home pay but to still not have to pay in April. In the past he’d been Single and 1. So we got a huge refund. I’d rather just have that money each week. So is Married and 2 the right way to do this? Thank you so much for any help!!
Ok the reason I also ask is my friend said claiming married means two, in other words married and 2 means, married=my hubby and me, then 2 means my son and ____? Is that right? That sounded wrong to me. Thanks!Answer: You file your tax return either as Married Filing Jointly or Married Filing Separately. You’ll normally pay less tax filing jointly. You get one exemption for each of you for a total of 3. The bun in the oven means nothing until he or she pops out. If it’s before 12/31, you get another exemption for the year.
As to what to claim on his Form W-4, since he is the only earner, he should file that as Married and 3 at the very least. With only one child, he could claim 4 withholding allowances and you would just about break even with only one child. Once the new one arrives, he can bump that up by 1 and claim either 4 or 5 withholding allowances.
This will significantly increase his paychecks and reduce the size of the refund that you get, which is probably what you really need to do.
If you read the instructions for Form W-4, you get one allowance for yourself, one for your spouse, one for each child or other dependent, as well a one “bonus” allowance if you hold only one job or are married and your spouse doesn’t work. Therefore, claiming Married and 4 right now or Married and 5 once the baby is born is quite legal and will just about zero you out at tax time.
Filing Status, Exemption Info from The “Tax Lady Sings”
Filing Status W4
Question: If I’m married can I still choose to file as SINGLE status on my W4?
The reason I’m asking is because I’m making about $30K more this year than last and I don’t have any big ticket tax deductions like a house or children. I think when you file as single more taxes are taken out, but I’m not sure if I can legally do that because I’m actually married, or does it matter?
Answer: For your W4, yes you can mark the Yes, I am married, but withhold at the higher single rate option. Then your employer will withhold more taxes, so you stand less of a chance of owing the government when you file your federal. Perfectly legal, it is not fraud!
Basic Explanation of W-4 tax Form : What is the Purpose of a W-4 Tax Form?
How To File Taxes After Extension
Question: When will I be audited because my child’s father claimed our daughter after I did?
I filed my taxes in February and, as per our agreement, I claimed my daughter on my taxes. Well, her father got an extension and filed in Oct. But he claimed her as well. He has his own business and I had earned income (I worked for someone not myself). Now I would like to know how long will it be before I am notified that I’m being audited. According to the new “rules” only one person is allowed to claim her and if they notice the same social being repeated, it flags something in the system. How is this done and how long does it take?
Answer: You won’t be audited, they will just send each of you a request for proof of eligibility. Since you have an agreement (in writing, I hope?) that says you get to claim her, submitting that will settle the issue. He may face fines for falsely claiming her, or they may just accept it as a mistake.
What to Do After You Hire a New Employee
Single Filing Tax Brackets
Question: Filing as married versus single?
I know that by filing as married, you get more back on your pay check. Does it even out at the end when tax time comes around? Does the benefit of having a bigger pay check require me to pay more back to the government come tax time or vice versa? If so, does that mean the only benefit as filing as married as opposed to single is placement in the tax brackets?
Answer: You must be talking about married filing joint. If legally married you only have two options- married/joint or married filing separate. You can’t file SINGLE at all.
If you file married/joint you agree upfront to let the IRS go after you for any taxes your lying cheating spouse is found later to have done. The IRS bribes you to sign jointly (bigger refund) so they can go after either one, two fish to fry!
If you file separate (to protect yourself) they tax you the hardest- WAY higher than “single”.
AND, If the spouse/rat has a home in his name only…The IRS even takes away your deductions (you’d normally get if single) like low income credit, or child care credit, or education expense, or Schedule A deductions for business mileage, car tags, etc.
WELL the IRS says it’s FAIR, afterall he is your spouse and we just ASSUMED that you & the stingy rat shared the benefit of ALL the “joint” income, and we ASSUME that YOU, the new wife lives in the home NOT the rat’s tax-free smiling all the way to the bank EX-WIFE.
How to Complete a 1040EZ Tax Form : How to File a Single Payment 1040EZ Tax Form
Tax Refunds In Bankruptcy
Question: $8000 tax credit and bankruptcy?
Hi.
We have a joint mortgage and I (husband) filed Bankruptcy last year and was discharged on January 2010. However on my credit it is reported as “INCLUDED IN BANKRUPTY & DISCHARGED” when on my wife’s it is showing current on payment. We are still making payment but mine does not report when hers is reported.
We filed out tax separately where I claimed the mortgage as I am the primary. We are now worry that we might not be able to get the $8000 credit since mine does not reported as pay on time.
Our quesiton is should we worry about this or it is fine?
By the way in the bankruptcy 7 I filed there was a stipulation where any tax return shouldnot be kept to pay the creditors.
I have already received my South Carolina Tax Refund and just waiting for the Federal which was done together with the $8000 tax credit.
Also what can I do to report the mortgage current on my credit?
Please let me know.
ThanksAnswer: I don’t have the answer to your question but I do not understand how you could possibly have qualified for a mortgage in 2009 if you filed bankruptcy which discharged in January 2010. There is something seriously wrong.
If your wife didn’t file bankruptcy, she would be responsible for the mortgage and the on time payment history would show on her credit report. It shows as discharged on your credit because you are not longer liable for the mortgage. You should check with your bankruptcy attorney and see what you need to do to reaffirm the mortgage.
Since the bankruptcy didn’t discharge till this year, you can still claim the interest and taxes on the property. But you won’t be liable for the mortgage next year and only your wife will be able to claim the deductions.
Tax refunds in Bankruptcy