jointly or separate

[GasBrommer]

What is the name of your state (only U.S. law)? FL

My wife has made about 35,000 this year as an employee, also started her own little business (spending more on inventory than actually earning), should we itemize the deductions or how would you suggest doing this?

I made about 28,000 a year, we have one dependent (she does), would it be best to file separately and have her claim the child (or does she make too much money to get an EIC?).

Also, she had changed her name is September (on her drivers license) but when trying to change it on SS, we had some problems and then she got a new job, long story short: we had to get a court order (which we are still in the process of), to revert to her old name. Would this be a problem if we just file under her old name (since her SS still shows that name)?

We also gave about $2,000 to charity, who would be best to claim this to get the highest return?

Thanks

[GasBrommer]

By the way, one reason to file separate would also be that I could free e-file next week and get a return sooner (within 10 days they say), since we're in need of some money now to pay off her car. Any suggestions are welcome.

[GasBrommer]

Anyone with suggestions?

[Kiawah]

I think you're just going to have to run the numbers both ways, to see if there is any scenario which makes a difference. It's certainly easier to do joint.

[LdiJ]

Originally Posted by GasBrommer

What is the name of your state (only U.S. law)? FL

My wife has made about 35,000 this year as an employee, also started her own little business (spending more on inventory than actually earning), should we itemize the deductions or how would you suggest doing this?

I made about 28,000 a year, we have one dependent (she does), would it be best to file separately and have her claim the child (or does she make too much money to get an EIC?).

Also, she had changed her name is September (on her drivers license) but when trying to change it on SS, we had some problems and then she got a new job, long story short: we had to get a court order (which we are still in the process of), to revert to her old name. Would this be a problem if we just file under her old name (since her SS still shows that name)?

We also gave about $2,000 to charity, who would be best to claim this to get the highest return?

Thanks

If you are married you only have two choices as to how to file. Married filing jointly or married filing separately. If someone files married filing separately they are NOT entitled to EIC, the child care credit and some other credits as well. Therefore, its likely NOT to your advantage to file separately.

Your wife will have to file a schedule C for her business...and yes, the expenses get "itemized" on schedule C.

You have to use the last name that Social Security has on file for your wife, on the tax return.

[GasBrommer]

Ok, thanks. As for EIC, it says:

Workers with one child must have an earned income below $33,241 to be eligible, and workers with two or more children must be below $37,783 in earned income to qualify for the EIC (Note: These limits are $2,000 higher in each category for workers filing a married joint tax return).

So say I made $28,000 and my wife $35,000, do we still qualify (do they combine both incomes)?

What is the maximum refund we can get? E.g. my wife would get about $3,500 and I would get $2,800 refund, wouldn't it be less if we do it jointly?

Sorry for being a little bit ignorant here, am still learning,.

[irsos]

Originally Posted by GasBrommer

Ok, thanks. As for EIC, it says:

Workers with one child must have an earned income below $33,241 to be eligible, and workers with two or more children must be below $37,783 in earned income to qualify for the EIC (Note: These limits are $2,000 higher in each category for workers filing a married joint tax return).

So say I made $28,000 and my wife $35,000, do we still qualify (do they combine both incomes)?

What is the maximum refund we can get? E.g. my wife would get about $3,500 and I would get $2,800 refund, wouldn't it be less if we do it jointly?

Sorry for being a little bit ignorant here, am still learning,.

You do not qualify for EIC. EIC is essentially welfare. A couple making $63,000 should not need welfare.

[GasBrommer]

Ok thanks, that's what I figured. I guess there isn't going to be much difference then between jointly and separate.
One last question, I see there is an option to e-file for free through the IRS website. Do you think that I am eligible to do this (married, filing separate) and then use a tax professional for my wife's filing?

Thanks for everything.

[FlyingRon]

Originally Posted by GasBrommer

Ok thanks, that's what I figured. I guess there isn't going to be much difference then between jointly and separate.
One last question, I see there is an option to e-file for free through the IRS website. Do you think that I am eligible to do this (married, filing separate) and then use a tax professional for my wife's filing?

Thanks for everything.

Why do you want to do this? It's probably going to cost you money unless you have some real oddball issues.

As for your original question, as long as all her income and taxes paid are reported on the right SSN, the respective names on the various documents don't much matter.

[LdiJ]

Originally Posted by GasBrommer

Ok, thanks. As for EIC, it says:

Workers with one child must have an earned income below $33,241 to be eligible, and workers with two or more children must be below $37,783 in earned income to qualify for the EIC (Note: These limits are $2,000 higher in each category for workers filing a married joint tax return).

So say I made $28,000 and my wife $35,000, do we still qualify (do they combine both incomes)?

What is the maximum refund we can get? E.g. my wife would get about $3,500 and I would get $2,800 refund, wouldn't it be less if we do it jointly?

Sorry for being a little bit ignorant here, am still learning,.

You are not eligible for EIC filing jointly OR separately. Jointly you make too much money, and separately you are not allowed to claim EIC.

If the refunds you mention above included EIC, then you included them incorrectly.

In general, filing jointly usually produces a better result than filing separately.

[GasBrommer]

Thanks again for your help. Actually the calculations on the refunds were based without EIC. And to FlyingRon, what do you mean with "Why do you want to do this? It's probably going to cost you money unless you have some real oddball issues."?

Do you mean hiring a tax preparer or what are you referring too?

[LdiJ]

Originally Posted by GasBrommer

Thanks again for your help. Actually the calculations on the refunds were based without EIC. And to FlyingRon, what do you mean with "Why do you want to do this? It's probably going to cost you money unless you have some real oddball issues."?

Do you mean hiring a tax preparer or what are you referring too?

He is asking why you are so insistant on filing separately. Filing separately rarely produces a better result than filing jointly. Filing jointly almost always produces a better result.

Plus, using a professional would cost you the same whether its a separate return for your wife or a joint return including both of you.

[GasBrommer]

Ok, we decided to do it jointly since it will probably be more beneficial.

Thanks for all the help here.