I worked a fulltime job in 2017, My wife ran the family business but did not receive a income. How should I file joint, seperate and should I claim her?

[willietopz]

I worked a fulltime job in 2017, My wife ran the family business but did not receive a income. How should I file joint, seperate and should I claim her?

[georgesT · Accepted solution]

It will be beneficial for both of you if you file Married Filed Jointly.

Filing a joint Return will generally give you a bigger refund or less taxes due. Your tax rate is higher When you file separately and you won't be able to claim the following credit:

• Education benefits
• Earned Income Credit (EIC)
• Child and Dependent Care Credit (usually)
• Adoption Credit (usually)
• The same benefit married filing jointly couples get for personal exemptions, 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.

In addition, 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.

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

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