topic Filing taxes in Get your taxes done using TurboTax

Filing taxes

VES — Mon, 25 Jan 2021 20:23:55 GMT

Got married March of 2020 and haven't worked since Nov 2019. Husband pays all expenses. How do I file if I have student loans and have received covid 19 stimulus for the year. My husband's income doesn't qualify for stimulus. Do I file and his dependent and he returns my stimulus? What about my loans?

Re: Filing taxes

xmasbaby0 — Mon, 25 Jan 2021 21:10:49 GMT

Your refund cannot be offset for student loans for your 2020 tax return. A spouse cannot ever be claimed as a dependent. File a joint return.

If you were legally married at the end of 2020 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $24,800 (+$1300 for each spouse 65 or older) You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit.

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI)

If you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separately

Re: Filing taxes

JohnB5677 — Mon, 25 Jan 2021 23:45:53 GMT

If you were married in 2020 you will have to file as married there is no need to file as a dependent. If they are filing jointly, their eligibility for the Stimulus is calculated based on their joint return, not individually.

There are two options:

Married Filing Jointly: This will combine your incomes, expense and deductions.
Married Filling Separate: This will separate your incomes but also change your deductions.

In either case you will record student loan information on the return you choose to file. In addition, even if you aren't eligible for a stimulus check based on your 2020 joint tax return, you will not need to pay back what you already received.