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smartNC0
New Member

Less tax to pay

My wife is unemployed. Is that lead to pay less tax from my income? if yes, do you know what would be total tax cut?

Thanks.

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3 Replies

Less tax to pay

Your tax due or refund will be based on your total income as a married couple, assuming you file a joint return, which is almost always the best way to file if you are married.  No, no one can tell you if you get a "tax cut."  You have not provided any other information, nor have you mentioned whether your spouse is collecting unemployment compensation, which is taxable income.

 

If you were legally married at the end of 2019 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 $24,400 (+$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-separ...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Less tax to pay

Try this tool to get an idea of your 2019  tax situation:

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Hal_Al
Level 15

Less tax to pay

It's a "tax bracket thing".

By not having to add her income to yours, on you tax return, some of your income may be taxed at a lower rate.  So, if some of your income is not pushed from the 12% bracket to the 22% bracket, you will save 10% on that portion of your income.   Exact amounts depend on your total income and how close you are currently to the bracket thresholds.

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