I hope a simple tax question

Posted By: Orrsislander

I hope a simple tax question - 02/25/13 07:18 PM

My 22 year old son lives at home and goes to college full-time; I still claim him as a dependent on my taxes. For the first time EVER, he worked last year and got his W2 in the mail. Can he file his own return, too, to get a refund of the taxes withheld (about $400.) Or can he not file since I claim him?
Posted By: Dip

Re: I hope a simple tax question - 02/25/13 07:22 PM

He has to file since he earned income but he will mark that someone claims him as a dependant. He files for his income. You don't report his income on your formm, just claim him as a dependant and increase your deduction.

That said, anyone knwo the benefits of married filing single or married filing joint? I don't even knwo why there is a option but this year I need to pick, and fast, btu dont knwo what is better, if there even is a difference.
Posted By: Dani York, CRCM

Re: I hope a simple tax question - 02/25/13 07:23 PM

I don't really know what the difference is, but I run my taxes both ways and pick whichever gives me the biggest refund. To date it has always been married filing jointly.
Posted By: manimal

Re: I hope a simple tax question - 02/25/13 07:24 PM

What she said ^^^^
Posted By: Dip

Re: I hope a simple tax question - 02/25/13 07:28 PM

http://www.bankrate.com/finance/money-guides/tax-filing-for-couples.aspx

The hubby doesnt have any itemized deductions, so mayeb this year we shoudl do it separately, based on the article above.

I use TurboTax...anyoen knwo if it is easy to pick filing status on turbotax after your info is entered? I only used it once before last year when i was still single.
Posted By: Matt_B

Re: I hope a simple tax question - 02/25/13 07:37 PM

You can change it easily in TurboTax, just go in and edit your personal information. It should also suggest what your optimal way of filing is, but I suppose it depends on if you want to trust it or not.

I had the same issue to resolve this year, we ended up paying someone to do it. First time I've ever paid someone to do my taxes, I was sad.
Posted By: Pale Rider

Re: I hope a simple tax question - 02/25/13 07:55 PM

I can't imagine the unusual circumstances that would have to exist for filing single versus filing jointly resulting in lower taxes on a federal return. You could lose a lot of credits and deductions.

Turbotax can quickly allow you to run both ways.
Posted By: cheekEE

Re: I hope a simple tax question - 02/25/13 08:09 PM

Simple tax question...Oh I remember those days. laugh

I wish you Tax luck, Dip. We will need it too. smile
Posted By: HappyGilmore

Re: I hope a simple tax question - 02/25/13 08:31 PM

yeah, but you have moving exoenses for a new job outside of your normal state, Cheekee...you may be able to claim those! but consult a tax professional to be sure wink
Posted By: VWgirl21

Re: I hope a simple tax question - 02/25/13 08:40 PM

Originally Posted By: Pale Rider
I can't imagine the unusual circumstances that would have to exist for filing single versus filing jointly resulting in lower taxes on a federal return. You could lose a lot of credits and deductions.

Turbotax can quickly allow you to run both ways.



The first year my husband and I were married we filed married filling separately. It worked for us because I made almost double what he did that year. We also bought a house and I got the first time home buyers credit. He is accountant so thankfully I don't have to pay anyone to prepare my taxes.
Posted By: cheekEE

Re: I hope a simple tax question - 02/25/13 08:53 PM

Originally Posted By: HappyGilmore
yeah, but you have moving exoenses for a new job outside of your normal state, Cheekee...you may be able to claim those! but consult a tax professional to be sure wink


I will attach a note to my taxes that says per Happy I get lots of $$ back you sons of ____. laugh
Posted By: chenin

Re: I hope a simple tax question - 02/25/13 09:20 PM

If one spouse or the other owes back taxes, child support, etc one may want to file seperately.
Posted By: Dani York, CRCM

Re: I hope a simple tax question - 02/25/13 09:21 PM

Originally Posted By: chenin
If one spouse or the other owes back taxes, child support, etc one may want to file seperately.


Or an injured spouse claim....though the injured spouse claim will delay your refund by several weeks (like 12!).
Posted By: manimal

Re: I hope a simple tax question - 02/25/13 09:23 PM

Can you switch back and forth year to year? For some reason I thought once you filed jointly, you had to keep filing jointly. confused
Posted By: Dip

Re: I hope a simple tax question - 02/25/13 09:37 PM

I heardx that too Mani but from what I saw online, seems you can make the choice each year...

Hubby and I make about the saem but he puts much more away to his 401K than I do. Also, he has nothign to deduct that I am aware of, but I have plenty with the house (house and mortgage are in my name only and will stay that way). I saw online that if you fiel jointly you muct both itemize, but i think the hubby's standar deduction is more than if he itemized...almost positive on that. We dont have kids or earned income credits or anything liek that so we might be filing separately. Will see what turbotax concludes though...
Posted By: chenin

Re: I hope a simple tax question - 02/25/13 09:50 PM

Originally Posted By: Dani York, CRCM
Originally Posted By: chenin
If one spouse or the other owes back taxes, child support, etc one may want to file seperately.


Or an injured spouse claim....though the injured spouse claim will delay your refund by several weeks (like 12!).


I thought about that after I posted. crazy
Posted By: Princess Romeo

Re: I hope a simple tax question - 02/25/13 10:28 PM

Quote:
simple tax question


^^One of the definitions you will find under the term:

Oxymoron
Posted By: Pale Rider

Re: I hope a simple tax question - 02/25/13 10:34 PM

OK, so the hubby is socking away his earned income into pre-tax retirement and has no ownership in the house and its tax benefits. Is Cali a community property state? I wouldn't want to be the hubby in that scenario. He may be worth more dead than alive. eek
Posted By: Dip

Re: I hope a simple tax question - 02/25/13 11:15 PM

CA is community property.
Posted By: RebekahL CRCM

Re: I hope a simple tax question - 02/26/13 12:02 AM

Orrsislander, is it just you filing? i.e. filing "single", not "joint" with a spouse? If so, you will likely qualify as head of household too. Look into it! Ka-ching!

Oh, and your son won't be harmed by you taking his dependent exemption. Like Dip said, he cannot claim himself as a dependent (since you are) but it sounds like his income is low enough that the standard deduction will wipe out his taxable income anyway, giving him a full refund of whatever withholding his employer made.
Posted By: Dani York, CRCM

Re: I hope a simple tax question - 02/26/13 02:49 AM

Originally Posted By: Dip
I heardx that too Mani but from what I saw online, seems you can make the choice each year...

Hubby and I make about the saem but he puts much more away to his 401K than I do. Also, he has nothign to deduct that I am aware of, but I have plenty with the house (house and mortgage are in my name only and will stay that way). I saw online that if you fiel jointly you muct both itemize, but i think the hubby's standar deduction is more than if he itemized...almost positive on that. We dont have kids or earned income credits or anything liek that so we might be filing separately. Will see what turbotax concludes though...


It was my understanding that if you file married filing separately, you both have to itemize or you both take the standard deduction. You cannot have it both ways (ie one itemizes and one doesn't). Check on that, but that has always been my understanding.

ETA: In fact from the link you posted earlier:

Deduction flexibility also is sacrificed. If one spouse itemizes, both must itemize, splitting the items to be listed on a separate Schedule A for each. That means a partner with few deductions couldn't use the standard amount and might get cheated when it comes to reducing taxable income.
Posted By: Pale Rider

Re: I hope a simple tax question - 02/26/13 03:04 PM

Y'all sound like a bunch of 1 percenters. Pay your fair share! Don't be greedy!
Posted By: manimal

Re: I hope a simple tax question - 02/26/13 04:05 PM

laugh
Posted By: Matt_B

Re: I hope a simple tax question - 02/26/13 04:20 PM

We have to pay to support all the old people wink

Not having kids or a house or anything exciting, and not having to itemize makes things really easy. Unfortunately with forms not being ready on time, ours are done and waiting for the IRS to finalize things so they can be submitted! (At least, last I knew they were still waiting)

Me and my education credits complicated everything.
Posted By: Dip

Re: I hope a simple tax question - 02/26/13 05:40 PM

Originally Posted By: Dani York, CRCM
Originally Posted By: Dip
I heardx that too Mani but from what I saw online, seems you can make the choice each year...

Hubby and I make about the saem but he puts much more away to his 401K than I do. Also, he has nothign to deduct that I am aware of, but I have plenty with the house (house and mortgage are in my name only and will stay that way). I saw online that if you fiel jointly you muct both itemize, but i think the hubby's standar deduction is more than if he itemized...almost positive on that. We dont have kids or earned income credits or anything liek that so we might be filing separately. Will see what turbotax concludes though...


It was my understanding that if you file married filing separately, you both have to itemize or you both take the standard deduction. You cannot have it both ways (ie one itemizes and one doesn't). Check on that, but that has always been my understanding.

ETA: In fact from the link you posted earlier:

Deduction flexibility also is sacrificed. If one spouse itemizes, both must itemize, splitting the items to be listed on a separate Schedule A for each. That means a partner with few deductions couldn't use the standard amount and might get cheated when it comes to reducing taxable income.


Oh man, I read that wrong...thought it meant filing jointly you both have to do it the same. Thsi is so stupid. Who makes up these ridiculous rules???
Posted By: Pale Rider

Re: I hope a simple tax question - 02/26/13 08:15 PM

Tax minimization is not tax evasion!
Posted By: Dani York, CRCM

Re: I hope a simple tax question - 02/26/13 08:33 PM

^^Spoken like a true banker! laugh
Posted By: HappyGilmore

Re: I hope a simple tax question - 02/26/13 09:11 PM

It's not like your marriage is valid anyway, seeing as you were married in a foreign country...so filing seperately is your only choice!!!
Posted By: Dip

Re: I hope a simple tax question - 02/26/13 10:04 PM

who got married in a foreign country?
Posted By: HappyGilmore

Re: I hope a simple tax question - 02/26/13 11:10 PM

Originally Posted By: Dip
who got married in a foreign country?


duh...you did

obviously...

President Obama was born in Hawaii and has a birth certificate to this effect

Birthers claim Obama was born in a foreign country

ergo...Hawaii is a foreign country
Posted By: Dip

Re: I hope a simple tax question - 02/26/13 11:48 PM

LOL!

I think we're safe, cuz we did the legal thing quietly in San DIego before we flew "out of the country."
Posted By: E.E.G.B

Re: I hope a simple tax question - 02/27/13 03:12 PM

Originally Posted By: MonkEE
Originally Posted By: HappyGilmore
yeah, but you have moving exoenses for a new job outside of your normal state, Cheekee...you may be able to claim those! but consult a tax professional to be sure wink


I will attach a note to my taxes that says per Happy I get lots of $$ back you sons of ____. laugh


Now there's a sure-fire way of getting audited every year for the next 40 years.....
Posted By: ahkcompliance

Re: I hope a simple tax question - 02/27/13 04:40 PM

We do pay to have our taxes done. We have always filed married filing jointly. When everything is said and done, the accountant gives us the difference between filing jointly or seperatly. However, for state we filing married filing seperately otherwise we would owe!
Posted By: Bankbb1, PITA

Re: I hope a simple tax question - 02/27/13 05:42 PM

Did this just go political?

It really doesnt matter if he was born in Hawaii or on Planet 9 at his point.

See, i put a sci fi spin on it! grin
Posted By: Sound Tactic

Re: I hope a simple tax question - 02/27/13 08:40 PM

He has to file his own return for his income, but you may still be able to claim him. Check the support requirement to see if you can claim him.
Posted By: HappyGilmore

Re: I hope a simple tax question - 02/27/13 09:57 PM

Originally Posted By: Bankbb1, PITA
Did this just go political?

It really doesnt matter if he was born in Hawaii or on Planet 9 at his point.

See, i put a sci fi spin on it! grin


of course not, clearly tongue in cheek...