All Family posts

Can a married person claim Head of Household filing status?

TurboTax Help — Tue, 21 Dec 2021 01:05:15 GMT

Even if you were legally married as of December 31, you're considered unmarried (and therefore eligible for Head of Household) if all five of these conditions apply: You won't be filing jointly with your spouse Your spouse didn't live in your home after June (temporary absences due to illness, school, vacation, business, or military service don't count) Your home was your child's, stepchild's, or foster child's main home for more than half the year (non-child dependents in your home don't qualify) You paid more than half the costs of keeping up your home during the tax year You meet the qualifications to claim the child as your dependent, even if the other (noncustodial) parent is actually claiming the child as a dependent on their return You can also be considered unmarried for Head of Household if your spouse was a nonresident alien at any time during the tax year and you're not treating them as a resident alien. Related Information: Do I qualify for Head of Household in 2020? Is it better for a married couple to file jointly or separately? What is a "qualifying person" for Head of Household? Related Information: Do I qualify for Head of Household in 2020? Is it better for a married couple to file jointly or separately?

Does it matter whose name goes first on a joint return?

TurboTax Help — Thu, 30 Dec 2021 18:18:47 GMT

It's not important whose name goes first — at least not to the government — but what does matter is being consistent with each subsequent return you file. When you file your first tax return together, decide whose name should go first and then stick with it per the IRS 1040 instructions, which read: "If you filed a joint return for 2019 and you're filing a joint return for 2020 with the same spouse, be sure to enter your names and SSNs in the same order as on your 2019 return." Changing the established name order isn't the end of the world, but it could result in processing delays for your taxes. Related Information: How can I ensure that my spouse's name goes first (as "Taxpayer") and mine goes second (as "Spouse")? Should I change the name order on a joint return with a deceased spouse?

What is my tax filing status (single, married, etc.)?

TurboTax Help — Mon, 27 Dec 2021 18:55:26 GMT

The IRS offers these 5 tax filing statuses: Single Married filing jointly Married filing separately Head of household Qualifying widow(er) You may qualify for more than one tax filing status. For example, a single (unmarried) person isn't necessarily restricted to the single filing status. They may be able to file as Head of Household or Qualifying Widow(er), assuming those qualifications are met. But if they weren't legally married as of December 31, 2021, they couldn't file their 2021 return as a married person. Likewise, someone who was legally married as of December 31, 2021 could file as married jointly, married separately, or head of household (again, if they meet the qualifications). But they couldn't file as single or qualifying widow(er). If more than one filing status applies to your particular situation, we'll choose the one that gives you the biggest tax break. Related Information: Is it better for a married couple to file jointly or separately? Do I qualify for Head of Household in 2020? Can a married person claim Head of Household filing status? How should I file my return if my spouse recently died?

Do I need to file my own taxes if I'm a dependent?

TurboTax Help — Mon, 20 Dec 2021 20:44:39 GMT

Even if you're a dependent, you'll generally need to file your own 2021 tax return if: Your earned income (money you made by working) exceeds $12,550 Your unearned income (interest, dividends, capital gains, etc.) exceeds $1,100 Your business or self-employment net income (gross minus expenses) is at least $400 Your gross income (earned plus unearned) exceeds the larger of $1,100 or your earned income (up to $12,200) plus $350 But even if your income falls below these filing requirements, you'll want to file your own tax return to get a refund of any federal or state taxes withheld from your paychecks. Related Information: Do I need to report my child's 1099-INT on my 2020 return? Do I need to file a federal return this year? What is unearned income? How do I add a dependent's W-2 to my return? What's the difference between self-employment income and other income?

Married filing separately in community property states

TurboTax Help — Wed, 22 Dec 2021 18:57:19 GMT

Filing taxes in community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin) as married filing separately (MFS) can be complicated. Certain states have laws about community property defining how they expect MFS couples to share, or allocate, income. TurboTax has allocation screens and a worksheet to assist you in entering any adjustments your community property state may require when filing separately. For more information, refer to IRS Publication 555 Community Property. If you're using TurboTax Online, we recommend that you transfer your return to the TurboTax CD/Desktop version. You'll save time by entering less information. Begin by completing a MFS federal tax return for you and your spouse, as you'll need the amounts for different income categories, tax amounts, and all tax payments for each of you. If one of you plans to itemize deductions, the other person must itemize as well. Otherwise, you'll both have to use the Standard Deduction. You may not be able to e-file, in which case TurboTax will guide you through the steps to print and mail your return. Entering income adjustments for a community property state First, use your community property state rules to determine what adjustments you expect to enter in TurboTa...

Can I claim myself or my spouse as a dependent?

TurboTax Help — Thu, 30 Dec 2021 16:17:41 GMT

No. Personal and dependent exemptions have been suspended in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017. But even prior to the TCJA, you couldn't claim yourself or your jointly-filing spouse as a dependent, even if you supported yourself or your spouse 100%. This is because the IRS already gave you a personal exemption, plus another exemption for your jointly-filing spouse. Claiming yourself—or yourselves—again as dependents would’ve been double-dipping. (There was a special circumstance prior to tax year 2018 where you could claim your spouse’s exemption if you filed a separate return, but this is no longer available for tax years 2018–2025.) Related Information: What does "financially support another person" mean? Who can I claim as my dependent? Does a dependent for 2021 have to live with me?

How do I prepare my return if I'm in a registered domestic partnership (RDP) or civil union (CU)?

TurboTax Help — Thu, 23 Dec 2021 18:48:10 GMT

Prepare your federal return with the Single or Head of Household filing status. Your partner should do the same. The IRS doesn't recognize registered domestic partnerships or civil unions as marriages. However, if you're residents in one of the handful of states that recognize RDP and/or civil unions, you can file your state return jointly. Important: If you're in an RDP and a resident of California, Nevada, Washington, or Wisconsin state, you also have to account for community property rules. Tip: If you plan to file a joint state return in a state that recognizes your partnership, we strongly recommend using TurboTax CD/Download software instead of TurboTax Online. It will save you time, money, and hassle. Instructions After you start a return in TurboTax, you'll be asked about your marital status on December 31, 2019. Select It's complicated and continue through the program. A little later, you'll enter your personal info and be asked Were you married? You can now select RDP or civil union. If you don't see an RDP or civil union option, it's because your state doesn't recognize these types of partnerships for tax filing purposes, in which case you'll choose Single. You can go back and review these screens by doing this: Open (continue) your return in TurboTax and search for...

What is the Child Tax Credit?

TurboTax Help — Mon, 23 May 2022 20:45:40 GMT

https://youtu.be/uLGbCaXnOV0 The Child Tax Credit is a tax credit you can claim for each qualifying dependent child on your return. You can get up to $3,600 per qualifying child under 6 $3,000 per qualifying child age 6–17 if your modified adjusted gross income (AGI) is less than, $150,000 if you're Married Filing Jointly or a Qualifying Widow $112,500 if you're filing as Head of Household, or $75,000 if you're Married Filing Separately or Single If your AGI is above those amounts If your AGI is higher than the amounts listed above, the amount of Child Tax Credit you're eligible for is reduced ("phased out") by $50 for each $1,000 your modified AGI is above the income threshold. For example, if you're Married Filing Jointly making $151,000 and your child is under 6, you’re eligible for a total credit of $3,550. You’ll still qualify to receive $2,000 per child until your modified AGI in 2021 exceeds $400,000 if married and filing a joint return; or $200,000 for all other filing statuses To qualify, your child must meet all of these requirements: Be under age 18 at the end of the tax year Is your child, stepchild, foster child, adopted child, sibling, step sibling, half sibling, or a descendant of any of them (for example, a grandchild, niece, or nephew) Has their own Social Se...

What if I was divorced?

TurboTax Help — Tue, 04 Jan 2022 17:02:31 GMT

If your divorce became final on or before December 31, 2021, you're not married for that year. Answer No to the Were you married? question. On the other hand, if your divorce wasn't finalized until after December 31, you'd answer Yes. NOTE: For finalized divorces, if you filed Married Filing Jointly (MFJ) last year, start a return in a new account this year. Completely removing a spouse after transferring information from a previous years' return is really tricky and something inappropriate is likely to be left in. Related Information: How do I remove a former spouse from my return?

What is Paid Family Leave (PFL)?

TurboTax Help — Mon, 20 Dec 2021 20:31:31 GMT

Paid Family Leave (PFL) income is money you receive from your employer, an insurer, or the government while you are away from work for an extended period of time so you can recover from a serious health issue, take care of a seriously ill family member, or bond with your newborn or newly adopted child. In the United States, employers who offer PFL are the exception rather than the rule. PFL is usually only available through larger employers, if it is offered at all. A small but growing number of states have enacted PFL legislation. They include California, Connecticut, the District of Columbia, Massachusetts, New Jersey, New York, Rhode Island, Oregon, and Washington. The National Partnership for Women Families keeps a list of state PFL laws. Paid Family Leave is different than paid time off like sick pay. For example, a new mother working at a company that does not offer PFL, might still take maternity leave based on accrued sick days. This pay falls under paid time off, and it is taxed differently than pay from PFL. We've got instructions on entering your PFL income in TurboTax. Related Information: Where do I report a 1099-G for unemployment or paid family leave? Is maternity or parental leave considered paid family leave? Is FMLA considered paid family leave? Is medical l...

How do I prepare our RDP return if we live in California, Nevada, or Washington state?

TurboTax Help — Thu, 23 Dec 2021 16:40:25 GMT

If you and your partner are in a registered domestic partnership (RDP) and you reside in the community property states of California, Nevada, or Washington state, you'll each need to prepare your own federal tax returns based on your state's community property rules. You'll both report your share of community property income, which is determined by your state's tax laws and other factors like prenuptial agreements. We can't figure out what your share of community property is. Each couple will need to determine this for themselves. IRS Publication 555 (page 3 in particular) has guidance on how to determine and properly split community income. Tip #1: Let's be honest: understanding community property tax laws and calculating each partner's allocations is not something most people enjoy doing. You may want to engage the services of a tax expert or CPA who specializes in community property tax preparation. Tip #2: If you choose not to follow tip #1 and you also want to jointly file your California state return, we strongly recommend switching to the TurboTax CD/Download software instead of TurboTax Online. It simplifies things and will also saves you some money. Additionally, our instructions in Part IV are geared towards the software. Part I: Do your federal return first Start a ...

Can I claim my relative or friend as my dependent on my current year return?

TurboTax Help — Mon, 20 Dec 2021 20:17:58 GMT

A dependent doesn't always have to be your child. Dependents come in all shapes, sizes and relationships. If all of the statements below are true, you can claim someone as a dependent. Relationship: The person lives in your home for the entire year and is considered to be a member of your household. If they don't live with you, they need to be related to you. Income: Generally, their income is less than $4,300 (not including Social Security and welfare). Support: Generally, you provide more than half the person's support. Marital status: Generally, a dependent can't do their taxes with a spouse (married filing jointly). They also can't be a dependent on someone else's return. Nationality: The person is a United States citizen; or a resident or national of the U.S., Canada or Mexico. Still not sure? We'll ask you questions in TurboTax to help you figure out who you can claim as a dependent. Related Information: What does "financially support another person" mean? Who can I claim as my dependent? Does a dependent for 2020 have to live with me? Can I claim myself or my spouse as a dependent? Related Information: Does a dependent for 2020 have to live with me? What does "financially support another person" mean? Can I claim myself or my spouse as a dependent? Can I claim my parent...

Is it better for a married couple to file jointly or separately?

TurboTax Help — Mon, 27 Dec 2021 18:39:39 GMT

Generally, filing jointly will give you a bigger refund or less taxes due. When you file separately, your tax rate is higher and you won't be able to claim: Education benefits Earned Income Credit (EIC) Child and Dependent Care Credit (usually) Adoption Credit (usually) The same benefit married filing jointly couples get for itemized deductions, the Child Tax Credit, and capital losses (all of these deductions are reduced by half) The standard deduction if your spouse is claiming itemized deductions On top of that, if you live in the community property states of Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you have to deal with community property allocations and adjustments, which adds extra work and complexity to your tax preparation chores. Tip: Only taxpayers who were still legally married as of December 31, 2021 are able to file as married, whether jointly or separately. Filing jointly means you file one tax return. When filing separately, you file two tax returns. Want to compare filing jointly vs. separately? You can compare filing jointly vs. separately with TurboTax's free calculator TaxCaster. It will give you the estimated tax differences when filing either way. It’s up-to-date with the latest tax laws and can estimate y...

Do I qualify for Head of Household in 2021?

TurboTax Help — Mon, 03 Jan 2022 23:46:18 GMT

You can qualify for Head of Household if you: Were unmarried as of December 31, 2021 and Paid more than half the cost to run your (or a qualifying parent's) home this year (rent, mortgage, utilities, etc.) and Supported a qualifying person. If you were still legally married as of December 31, 2021, and a child lives with you, you can qualify for Head of Household under a slightly different set of rules. After you answer all the questions about yourself and your dependents at the beginning of your return, we'll let you know if your situation qualifies for Head of Household. You can also revisit these questions by selecting My Info (online) or Personal Info (software), and then selecting Edit next to your name or your dependent's. Related Information: What is a "qualifying person" for Head of Household? Can a married person claim Head of Household filing status?