Tax filing question???

[BRUHA]

I am married but was thinking of filing seperately from my wife. I was doing our taxes on TurboTax and noticed that our return amount decreased when I entered my wife's disability income (she recieved disability for about 2 1/2 months after having our daughter).

Does it make more sense to file jointly or seperately?

 

[VegasGuy]

I am married but was thinking of filing seperately from my wife. I was doing our taxes on TurboTax and noticed that our return amount decreased when I entered my wife's disability income (she recieved disability for about 2 1/2 months after having our daughter).

Does it make more sense to file jointly or seperately?

It depends playa. If her disability premiums were deducted from her monthly pay on a pretax basis then the disability money is taxable income. On the other hand if her disability premiums were deducted from her monthly pay on a after tax basis then some or all of your disability income may be straight butter. IOW tax free.

-VG

 

[Temujin]

It depends on how much money she makes compared to how much money you make. Generally speaking if you both made close to the same amount of money there is not much of a tax advantage to filing jointly.

(Just examples based on irs tax tables http://www.irs.gov/pub/irs-pdf/i1040tt.pdf)

If you both make 30K and filed seperately you would each owe 4,171 for a total of $8,342. (this is gross number not including deductions or credits)

If you filed jointly showing a total income of 60K you would owe combined $8,336 dollars for a savings of only $6.

However if you make substantially more than your wife. For instance if she only made 10K but you made 50K.

W= $1,139
H = $9,171
T = $10,310

In this case you would owe $1,968 MORE in taxes by filing seperatly.

So in general filing jointly does give you a tax benefit however that benefit decreases as the income of your spouse approaches equality with your income.

 

[afroyale]

Also keep in mind that if she's delinquent on any type of federal loan, it might affect or delay the return if you file jointly (I think).

 

[Lick]

I am married but was thinking of filing seperately from my wife. I was doing our taxes on TurboTax and noticed that our return amount decreased when I entered my wife's disability income (she recieved disability for about 2 1/2 months after having our daughter).

Does it make more sense to file jointly or seperately?

I pay someone to do this for me... However, start here; http://www.irs.gov/advocate/article/0,,id=98206,00.html It aon't nothing like knowing ya rights! "LICK"

 

[CybaCipha]

Don't forget that by filing married filing separately you forfeit many deductions and tax credit you would get if you filed jointly.