Thursday, May 13, 2010

Will getting married before the end of the year positively or negatively affect our tax return?

My fiance and I live together and have a 1 year old together. I don't work but he does. He makes about 17000 a year before taxes and were wondering if we got married if it would positively affect our tax return? Thanks!!!Will getting married before the end of the year positively or negatively affect our tax return?
Yes, It would be a benefit to get married. Since you do not work, your standard deduction and personal exemption goes to waste if you remain single. If you get married however your husband will benefit because your standard deduction will be twice as much and he will also receive a benefit from your personal exemption, on top of that you will get a larger earned income credit.





If you actually worked, and made money it would most likely be more beneficial for you to stay single, because one of you could file as head of household and receive the earned income credit, and the other could file as single. That way your combined standard deduction would be greater.Will getting married before the end of the year positively or negatively affect our tax return?
Yes, if you file joint return, then


deductions for single without dependent are $8,950


deductions for married joint return are 2 x $8,950 (that is no tax)


Your EIC will increase.


Read http://taxipay.blogspot.com/2008/02/fili鈥?/a>
Married couples get a better rate.





Married





Gross Wages $17,000


Standard Ded ($10,900)


Exemption ($ 10,500)


Taxable 0





EIC ($ 2917)


Refund ($2917)


If you were unmarried you would get $2712. EIC





In the long run, married couples would get more benefits.
It should inprove your tax refund for two reasons. You'll be able to file a joint return, which will give you a tax advantage. And your EIC as a married couple will be $271 more than he'd get if he claimed head of household and claimed your child.
Yes, you get a marriage tax credit.

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