File Taxes Married Filing Separately

Question: is it better to file my taxes as “married filing separately” or “joint”?
i got married last year and my husband and i filed as head of household each..we never changed our addresses…we thought by doing that we would get a bigger return and we did but now im worried that we might get audited in the future…how should we file this year? i just want a big return.
ps..i file with the children
Answer: Well, let’s clear a few things up here. You don’t “get” a return, you FILE a return. A tax return is the forms and schedules that you send to the IRS. If you get money back, that’s called a REFUND.
OK, now to the BIG problem that you have. There’s not going to be a “big refund” this year since you’re probably going to owe the IRS a small fortune when you amend those fraudulent HoH returns from last year. Assuming that you also collected the Earned Income Credit you also risk being barred from any future EIC claims for the next 2 to 10 years.
As a married couple living together, your ONLY filing options are Married Filing Separately or Married Filing Jointly. Head of Household is NOT an option, and a brief read of the instructions explains that pretty clearly.
MFJ usually will result in the lowest total tax liability. Filing MFS will kill the EIC so that’s usually not a viable option for most families.
Your first step is to amend last year’s returns to either MFS or a MFJ return. Pay as much as you can with the amended return and get on a payment plan for the balance and stick to it. Don’t be surprised if the IRS comes back with an EIC ban. Since you came clean first they will likely drop any fraud penalties though you still will be liable for late payment penalties and interest that will accrue from April 15, 2009.
If you don’t amend and the IRS catches this — and the odds are excellent that they will — you can be assured of a fraud penalty because you deliberately used different addresses to make it look as if you were not married and maintaining separate househlolds. Tack on a full 10 year ban on the EIC as well if the EIC payable drops at all. If they REALLY wanted to play hard ball, they could even prosecute you both for tax fraud. The problem that you are facing is that since the IRS can make a pretty good case for fraud there’s NO statute of limitations. You’d be looking over your shoulder pretty much forever.
Key numbers as you complete your taxes
Important numbers as you prepare to file your 2009 tax return:
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Taxable Income Deductions

Question: Can the deduction from rental property reduce other source of income tax liabilities?
My rental income is less than expenses I have spent on the property. I also have other source of income such as wage from employment. I am wondering if I could use the deductions reduce my other source of income in result to reduce my Taxable Income and tax liabilities
Answer: as long as your total family’s income is less than 125,000 yes it will decrease your taxable income. it sound like your new to this , see a tax consultant and save a lot
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