tax credits

a419cookie — Tue, 20 Aug 2019 03:45:34 GMT

I am married but filing separate. I own a new hoe and also have a child along with child care, but it states I do not qualify for tax credits. My returnis only 1700 compared to 6000. Is it better to file joint?

Re: tax credits

VolvoGirl — Tue, 20 Aug 2019 03:57:19 GMT

Do you live together? Why are you filing Separate?

Unless you have a specific reason to file separate returns,

It is usually better to file Joint. Joint has the lowest tax rates and the highest Standard Deduction. And if you are in a Community Property state MFS gets tricky to figure out. Here's some things to consider about filing separately……

In the first place you each have to file a separate return, so that's two returns. And if you are using the Online version that means using 2 accounts and paying the fees twice.

Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong. If one person itemizes deductions then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!

And there are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

And contributions to IRA and ROTH IRA are limited when you file MFS.

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

See …….

https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-separately/00/25590

Re: tax credits

SweetieJean — Tue, 20 Aug 2019 23:16:50 GMT

Where is the $6,000 coming from? Some tax breaks (such as the Standard Deduction) are subtractions from income, before taxes are calculated. They are not tax credits or refunds.

topic tax credits in Deductions & credits

tax credits

Re: tax credits

Re: tax credits