If I file my taxes on my own without my wife we will get more back than if she files with me. Will we be penelized if she doesn't file this year? she doesn't owe?

[rocknrollnightma]

My wife and I both claim 0. We also have child credits. but if we file both of our returns, we lose alot of money. If I file by myself without her we get much more back. My question is can I file just my return this year and have her not file this year? She has claimed 0 all year long so she shouldn't owe anything? Will we get penalized if we do this? 

[rocknrollnightma]

I should mention I'm not talking about filing seperately I'm talking about having her not file at all this year and postpone her filing until next year? At which time we would file jointly....I read somewhere that you can avoid filing as long as you don't owe?

[VolvoGirl]

No neither of that is true.  How would you file without her?  If you are married You either file file MFS or Joint.  You can not file Single.   If you file Joint you must include all the income for both of you.  The IRS gets a copy of all the W2s and will match it it your return.

[VolvoGirl · Accepted solution]

You can't get child credits when you file separately and several other credits.

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 even with no other income.

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

[rocknrollnightma]

I should mention I'm not talking about filing seperately I'm talking about having her not file at all this year and postpone her filing until next year? At which time we would file jointly....I read somewhere that you can avoid filing as long as you don't owe?

[VolvoGirl]

Yes you are talking about filing separately.  You would file your return as MFS married filing Separate and she wouldn't file her own MFS return (which would be wrong).

[xmasbaby0]

ALL of your 2017 income MUST be reported whether you choose to file married filing jointly or married filing separately. You do not get the choice to just have your wife "not file this year."  

If you were married at the end of 2017 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 each receive the $4050 personal exemption, plus the married filing jointly standard deduction of $12,700 (add $1250 for each spouse over the age of 65).  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.  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

[rocknrollnightma]

I should mention I'm not talking about filing seperately I'm talking about having her not file at all this year and postpone her filing until next year? At which time we would file jointly....I read somewhere that you can avoid filing as long as you don't owe?

[xmasbaby0]

You have already received the correct answer from VolvoGirl about this.  Having her "not file at all this year" is not going to fly.