taxes question

chayer227

we worked on taxes the past couple of nights. 

We're in a HUGE fight right now, because of the numbers...

we tried each filing separately to see what the numbers were, then filed jointly.

separately we're getting $6000+  and $600 (the difference is because he claims the house and all the deductions and claims his educational expenses.)

married filing jointly we're only getting $5500

How is that possible?  Isn't it supposed to be beneficial to be married??? WTF???  

Is it allowable to file single even though we're married?

miss.kayla

nope!

I read online that if your married you have to file married filling jointly or separately no other choice. I also read different couple benefit differently either by filling together or not. 

Sounds like you've done your homework and maybe you should file separately.

I am really disappointed about this as well! I use to get $4000+ claiming head of household with our two children now its $1889 we have no benefit filling jointly either. it really stinks!

hrblock online has a community page where you can ask all sorts of questions and they are answered within a hour.... this is where I found out I could no longer file with head of household.

chayer227

I'd like to find all those people who are spreading this nasty rumor that you benefit (in taxes) from being married and string them up!  This was not a welcome "surprise" in my house!

Future.Mrs.Shawty

Well, 5500 or 6000 is a GREAT return.  But, yes...you can only file "married filing joint" or "married filing separate"

Our return isn't as big as our combined returns used to be, but that's just the way it is.  We're still getting $4500 back and I'm okay with that!

Karen2905

You can file separately the first year you're married because you weren't married for the entirety of 2009.  We ran our numbers both jointly and separately, and jointly worked out better for us. 

Love what you're getting.  It's more the twice what we're getting!!  

I would highly suggest, for further questions, call the IRS helpine. We called them on Monday for a 1098-T question...  While we were on hold forever, they were very helpful once we got on the phone with them.  If/when you do call, make sure you can have your phone on speakerphone or something so you can walk around and do other stuff while you're on hold. 

Telephone Assistance for Individuals:
Toll-Free, 1-800-829-1040 
Hours of Operation: Monday ? Friday, 7:00 a.m. ? 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).

munkii

chayer227:

he claims...his educational expenses

How is he claiming these under MFS?  The IRS does not give this benefit to MFS: see here.  Or are you saying he would get it if he filed single?  Like PP said, unfortunately, you have to file as married one way or another.

Jkip0705

How can I get a massive return like that!?!? lol

Fotophreak4c

it worked out really well for my dh and I. Last year he got about 1800. I didn't work at all last year and we filed married. This year we got 5k. You shoulda seen his face when the lady told him. I think he almost fell outa his chair. 

Karen2905

Jkip0705:

How can I get a massive return like that!?!? lol

 

Right?  What am I doing wrong? 

kelliejo83

That is a GIANT refund!  But yea, we don't see any benefit to being married either, tax-wise that is.  

Looking back to my refund and DH's refund last year, it's almost exactly what our joint refund is this year.  I thought there would be a "credit" of some kind for being married... guess that's just a nasty myth.

juangela

DH and I came up about even. Honestly, I don't think there is anything magical about being married. Once you have kids and can claim dependents, it is supposed to get better. Sucks that you could have gotten more filing solo, though!

Also, from what I've been told, you really don't want to be getting a huge tax refund. If you are getting back huge amounts of money, you should probably decrease the amount being withheld from your paychecks - your refund is exactly that, money that the government has been taking from you and using all year long without paying any interest. I'm definitely one to err on the side of caution and have them take out more than that need, but not $5000 worth! You'd be much better off taking that extra and putting it into savings (or a cd or something where you earn interest) and making money off of your money each month.

With that said, DH and I end up somewhere in the middle, cause it is nice to get that check early in the year (which just gets dropped into savings for us anyway...but we did miss out on interest on it for the last 12 months) and I don't want to be stressing about paying back thousands either.

Sorry, took it kind of off topic, but something we should all think about since we have so many life changes (weddings, home buying, babies) happening or bound to happen in the not-too-distant future. I found this blog helpful in describing the two deduction options:

http://www.theamateurfinancier.com/blog/great-debates-tax-refunds/

kelnyc

DH and I break even too, but I usually have to pay a few thousand because of my commission income. So, while DH usually gets a nice return (his bonuses are highly taxed), my 1099 income will eat that up, so all in all, I pay less and we have more cash in-hand. We also don't own our home or have any dependents, so this is really the best we can hope.

jlk0219

I agree with juangela- I'm of the mindset where it's better to get a small return, as long as you don't owe money.  When DH and I first got together he was of the opposing mindset- he had the govt. take out a lot of taxes so he could get a big return, and he thought of it as "setting aside" money so he could "save" throughout the year. Personally I think that's silly- it's far better to take a percentage out of each paycheck (10% is the recommended) and put it in savings where you can earn interest.  In the 5 years we've been together, DH has seen that he was loaning his earnings to the govt interest free and has changed the allowances on his W-4 so that he gets more take-home money throughout the year.  Plus, DH isn't so great with spending, so getting a huge lump sum always tempted him to blow on the money on purchases, not save it.

Fotophreak4c

juangela, i just learned about that in my Dave Ramsey book. It is much better to keep at least 4k of that money and put it into a mutual fund or something to gain interest! My tax lady told us that also when we went to file. The only thing is, u really have to discipline yourself to REALLY put it in savings and not blow it on "emergencies!" I think I could prob do it but I dunno if dh could. We are working on our finances right now and he is really becoming motivated to have his money work for him and him not working for his money! Hopefully, we can get it together this year. 

arobertson62282

Our tax situation was interesting.

Me: Made less, donated more but I wasn't able to claim my home interest and student loan interest like I had been doing...so I was $30 less than last year. Me, happy. 

DH: Made more, donated more, getting a lower return. 

We filed separate. I'm spending on photography toys - well some of it. He tells me to enjoy it because next year, I probably wont' get much. However, I automatically take a huge chunk of my paycheck and throw it into savings. I wasn't saving hardly anything until I forced myself to. It's a good practice and we've saved a ton of money over the past 2 years.

chayer227

we claim 0 exemptions.  We have the most possible taken out of each paycheck. We aren't good at setting money aside, and usually need the extra cash at this exact point in the year.  We know it's not ideal, as saving the money ourselves would be better, but we're not disciplined enough to get it set up at this point. 

scottnsissy

In reality I think there is a little bit of a penalty if you're married.  Sad but true. 

I'm pretty sure if you're married even one day in a year you have to file as married.  Of course, you can choose "married, filing jointly" or "married, filing separately," but you completely lose the ability to select "single" as an option for tax filing purposes.  Now, you can keep withholding on your check as though you're single, but you can't file that way.  I would definitely have a tax professional check over my return before submitting that to the IRS.