The IRS Deductions Blog

Posts Tagged ‘2010’

Question: What is the best way to file with the IRS if your married to get the most of your return?

My wife and I were wondering how we should do our taxes come tax season. Last year we claimed and file jointly and received about $3200 after we paid H an R block. This is our first time filling together (recently married) and my wife always received about $4500 from the irs because of her two girls. She makes 27,000 a year and qualified for earned income credit I guess. I make 45,000 and have to pay for a lot more taxes of course. We also own a house together as well. I claimed single this and she claimed jointly. What would be the best way to file and receive a larger refund.?

I went to the irs calculator and inputed (my) info and it said I would only have to pay $2200 if I claimed jointly???
But if you go to the tax tables (after the standard deduction) the tax rate is double or more (almost $6000). Which one is right?
Thank you in adavnce!!!

Answer: Once you are married, you no longer have the option of filing single – you can file as married filing separately, or jointly. Joint is almost always better for you as far as how much tax you pay/how much refund you get.

As a single mom she would have been eligible for EIC, but not now – someone filing as married filing separately isn’t eligible in any case, and on a joint return your income is too high.

It’s not possible for her to file a joint return and you to file separately. If you sent them in that way, you’ll be hearing from the IRS since you would have filed twice. Or more likely they’ll just reject the 2nd one they process -and they won’t catch it until a year or two from now when they finish matching up the returns to the W-2’s they got, then you’ll get an impressive bill for the tax you still owe plus penalties and interest.

To use a calculator for a joint return, you have to enter BOTH people’s info, not just one. When you file jointly, both of your info is added together on the same return.

The tax % you see in the tax tables is the % you pay on the highest dollar, not on all of your income.

Items on Amazon Right Now for Standard Deduction Calculator:

Is it time to refinance a mortgage?

Dear Dr. Don, I have a $390,000 mortgage at a 5½ percent fixed interest rate for 30 years. I have 27 years left in the current term. Is it a good idea to refinance the loan for 30 years fixed at a 4.37 percent interest rate? Closing costs will be $1,800.

Question: When did the IRS start allowing non-deductible IRA contributions?

Answer: Several years ago, but there are still limits, and rules to meet, you can’t just put in whatever you want to.

Items on Amazon Right Now for Deductible Iras:

Gifting and investment shifts clear road to cozier retirement

Will and Liz are saving, but they’re also paying out a hefty sum for college tuition. Their oldest child is a junior in college, and their youngest will start next year. Some of the college funding comes from savings but…

Finance & Investment Tips : Early Withdrawal Penalty on a CD Held in an IRA

Items on Amazon Right Now for Standard Deduction And Personal Exemption 2009:

‘Millionaire’s tax’ could hit more Mainers this year

When the alternative minimum tax first was passed in 1969, it was called the “millionaire’s tax” and was aimed at preventing the very rich from escaping federal income tax …

House Session 2010-04-15 (17:25:18-18:26:55)

Question: Is standard deduction still available in India for income tax?

Answer: Standard Deduction has been withdrawn effective Financial year 2005-06

Items on Amazon Right Now for Income Tax Standard Deduction India:

Niko Reports Results for the Quarter Ended June 30, 2010

CALGARY, ALBERTA– – Niko Resources Ltd. is pleased to report its financial and operating results, including consolidated financial statements and notes thereto, as well as its managements’ discussion and analysis, for the quarter ended June 30, 2010, the first quarter of Niko’s fiscal year.

Preparing India Income Tax Return – Part 3

Question: Can I deduct personal exemptions in addition to standard deduction?

I just heard, for the first time, about personal exemptions ($3500) as a deduction for reducing your taxable income. So far, I have always deducted the standard deduction ($8750 for 2008) on my 1040EZ form. Can I use the personal exemption in addition to the standard deduction? How/where would I do that? Does this mean I missed out all these years?

Can I also use personal exemptions if I itemize on Schedule A?

Thank you very much

Claudia

Answer: The standard deduction is $5450 (single filer) for 2008 tax year. 1040EZ really makes it easy for you cuz it combines the standard deduction and personal exemption already. You are not missing out on the personal exemption.

Items on Amazon Right Now for 2008 Standard Deduction Personal Exemption:

Dunne: MEA Council Meeting

Good afternoon and thank you for inviting me to speak to you today.

MeltDown #410 EMERGENCY ECONOMIC STABILIZATION