Quick Tax Question

[bla_3x]

Hello, I do not have any income this year (did work study last year). My Wife and I filed jointly last year and that worked out very well as we got a great refund.
Can we file jointly again even though I did not work (so, her income = X mine = 0)? We could really use that standard deduction!
Thanks!

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[dpmd]

Yes you can. From the instructions for the 1040 EZ "For federal tax purposes, a marriage means only a legal union between a man and a woman as husband and wife. A husband and wife can file a joint return even if only one had income or if they did not live together all year. However, both persons must sign the return. Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return."

 

[MDempress]

My boyfriend and I are thinking about getting married, but we are unaware of the taxes involved and how that will affect me being in medical school and he in graduate school. We will be entering school Fall 2007 and would like to marry summer 2007.

Is it better to file separate or together?

 

[mshheaddoc]

Well if neither one of you will have an income its not really going to affect much of anything if you have no income.

 

[IceMan0824]

Filing jointly and separately really depends on your situations.

In the case above where one spouse has an income and the other doesn't it makes sense to file jointly. Why...because there is a bigger tab bracket if filing jointly.
0-$14,600: Pays 10% over $0
$14,600 - $59,400: Pays Flat $1,460 plus 15% of the amount over $14,600
$59,400 - $119,950: Pays Flat $8,180 plus 25% over 59,400

The ranges are wider that filing separately so if one spouse only works, its almost a discount.

Now, if you both work, what will happen is that one (primary income maker) will be taxed at

0- $7,300: Pays 10% over 0
$7,300 - $29,700: Pays $730 plus 15% over 7,300
$29,700 - $59,975: Pays $4,090 plus 25% over 29,700
$59,975 - $91,400: Pays $11,658 plus 28% over $59,975

And from what I hear, the spouse then gets taxed at the percentage where you stopped. So you make $90,000 and she makes $1. You pay "$11,658 plus 28% 30,025" and he/she pays "$.28". or 28% of $1.

So, you might need to do the math to see which is lower. But most time, just eyeballing it will tell you which will save you money....unless you have to pay Alternative Minimum Tax...then in that case, go see a tax prepaper.


I know this is a little short in explanation, (since it didnt go into deductions) but if anyone needs clarification. I can repost or just pm me.