Tax filing question
- Thread starter Qbert
- Start date
I'm fairly certain you do have to file and claim the income. I'm not sure what she did to earn the money 
but if it was something like babysitting it would fall under the self-employment tax and she should receive a 1099. Otherwise she probably received a W-2 and it would be added to your joint income and would be taxed at the same rate you are.
Honestly I'm unsure of the specifics, but the government is going to tax you on it one way or the other.
but if it was something like babysitting it would fall under the self-employment tax and she should receive a 1099. Otherwise she probably received a W-2 and it would be added to your joint income and would be taxed at the same rate you are. Honestly I'm unsure of the specifics, but the government is going to tax you on it one way or the other.
Nah, he said he wasn't filing jointly. He's fine unless if was self-employment.I'm fairly certain you do have to file and claim the income. I'm not sure what she did to earn the money
Honestly I'm unsure of the specifics, but the government is going to tax you on it one way or the other.
Yes, but it is usually the least beneficial method.
http://finance.zacks.com/one-spouses-income-below-500-claim-married-filing-jointly-2862.html
I think this seems to answer the question fairly well, if accurate:
Filing Requirements
Federal law requires you to file a federal income tax if your gross income exceeds minimum levels, based on your filing status. If you and your spouse intend to file separate returns, that threshold was $3,700 for the 2011 tax year. If your spouse's income was below $500, she would not have to file a return if filing separately. If you were filing a joint return, you and your spouse combined could have made up to $19,000 before you had to file a federal income tax return, but you would have to include all income from both yourself and your spouse, regardless of the amount.
Reasons to File Jointly
Even if your spouse earned less than $500 for the year, if she was employed it is likely her employer withheld taxes from her paycheck. The only way to get a refund for those taxes is to file a tax return. You also get to combine your deductions, which might give you significant tax savings over filing separately if your spouse qualifies for a lot of itemized deductions. For example, if the reason your spouse did not earn much money was because she had serious medical problems, you can add her medical expenses to your itemized deductions.
Reasons to File Separately
In most cases you'll have a lower combined tax obligation if you file a joint return, but that is not always the case. The IRS recommends figuring your taxes both ways and filing your taxes using the status that gives you the lowest obligation. If you file a joint return, both spouses are jointly liable for all taxes due, even if one spouse earned less than $500. If you want to be responsible for only your own taxes, you must file separate returns
My taxes are plowed as well, as I live in one state (IA) for a company in the same state, but for 90% of the year I'd say, I work at one of their clients in another state (WI). It was fine for last year, but they switched to a new payroll company and now this year I received two W-2s instead of just one, but even with my lack of tax knowledge, it seems wrong. My main W-2 with all wage info lists my non-home state (WI) and has all my reported income under the state info for WI. The second W-2 only lists state info in box 15 and 16, but the wages are exactly $13k less than what I made overall, with nothing listed in taxes taken out.
As far as I know, your home state has the right to tax everything you made, whereas the state you only worked in can only claim what you made while you were there. Then you would get credit from your home state for what you paid into the other state. I normally do mine through Turbo Tax but I called HR Block to see if I could set up an appointment. The woman tried to walk me through it but even she thought it sounded wrong.
And to top it off they got my address wrong, which normally wouldn't be an issue I guess since I would be e-filing, but who knows about this year.
As far as I know, your home state has the right to tax everything you made, whereas the state you only worked in can only claim what you made while you were there. Then you would get credit from your home state for what you paid into the other state. I normally do mine through Turbo Tax but I called HR Block to see if I could set up an appointment. The woman tried to walk me through it but even she thought it sounded wrong.
And to top it off they got my address wrong, which normally wouldn't be an issue I guess since I would be e-filing, but who knows about this year.
That doesn't sound right. Does your wife own property on her own or something?
The whole tax filing thing that you guys do over there seems like a massive ball ache.
Most people don't have to do that sh*t over here.
Most people don't have to do that sh*t over here.
Yea I wish that was the case. If I lived and worked in the same state it wouldn't be a problem but right now it's just a mess.Definitely. I'm young enough that my parents still do it for me though
Haha, yea, I can't really think of a situation where being married and filing separately would provide you with any sort of an advantage over being married and filing jointly, especially where your wife is making little to no money.
The tax bracket range for married couples filing jointly pretty much doubles versus individuals resulting in lower tax rates for a large range of income.