Taxes

[Misky1951]

New wife (married in 2024) and I will be going to Villages Tax Aide for our tax preparation. From my research, it appears filing jointly is the best method. Since this is both our first time filing jointly, should we do both a joint return and individual returns to see what method gives us the lowest tax liability? Is so, will they do both for us ?

[Bill14564]

New wife (married in 2024) and I will be going to Villages Tax Aide for our tax preparation. From my research, it appears filing jointly is the best method. Since this is both our first time filing jointly, should we do both a joint return and individual returns to see what method gives us the lowest tax liability? Is so, will they do both for us ?

We've been married much longer than that but at times have wondered about filing status. You might try what we did and purchase one of the tax preparation packages and fill it out both ways. It takes a little time but it will give you a good idea about which items make a difference.

We found that filing jointly makes more sense for us. Our situation is we both have similar incomes, our investments are in both our names, and neither of us have enough deductions to itemize.

[Haggar]

New wife (married in 2024) and I will be going to Villages Tax Aide for our tax preparation. From my research, it appears filing jointly is the best method. Since this is both our first time filing jointly, should we do both a joint return and individual returns to see what method gives us the lowest tax liability? Is so, will they do both for us ?

That's a good question - and a step I do for my clients. The individual items - 1099's, W-2s, capital gains need to tagged as taxpayer or spouse. There is a option/ form you then elect to split the items and see if a tax advantage is gained by filing jointly or separately. Very rarely is there a benefit to filing separately, Some items are lost - such as a child care credit - when separate returns are filing.

Some married couples file separately because the spouse doesn't want any liability if their significant other may haves underreported income or not reported income at all.

Some file separately because they don't want their spouse to know their income!

[Stu from NYC]

No matter who does your taxes have them done both ways, especially as this is the first year you are together

[mtdjed]

No matter who does your taxes have them done both ways, especially as this is the first year you are together

That would be my first question to the Tax aid person. That is why you go to such services.

[LuvtheVillages]

New wife (married in 2024) and I will be going to Villages Tax Aide for our tax preparation. From my research, it appears filing jointly is the best method. Since this is both our first time filing jointly, should we do both a joint return and individual returns to see what method gives us the lowest tax liability? Is so, will they do both for us ?

Since you are married, you do NOT have the choice to file as individuals. Your choices are to file a joint return, or to file "married filing separately." Very rarely does married filing separately work, because it mandates loss of some credits and different tax rates. Check it out to be sure, but you will likely find that joint filing works best.

[westernrider75]

New wife (married in 2024) and I will be going to Villages Tax Aide for our tax preparation. From my research, it appears filing jointly is the best method. Since this is both our first time filing jointly, should we do both a joint return and individual returns to see what method gives us the lowest tax liability? Is so, will they do both for us ?

You could try one of the free options to do it online and compare which is better. It will tell you part way through if you are filing in the most beneficial way for you. You do not have to complete it, just delete all the info.

[MikeN]

Ask your tax preparer but filing jointly has always been best

[ndf888]

Buy TurboTax and try it yourself. It’s not that complicated.

[rsmurano]

I’ve been using turbo tax for over 25 years. I did let an outsider do my taxes during 1 complicated year and she verified what I was doing using turbo tax was correct. I run multiple scenarios before April 15th but I also run multiple what-if scenarios before the end of the year on selling some of my portfolio to replenish my cash bucket without any tax burden.

[JoelJohnson]

Go to DINKYTOWN.NET (I know it sounds odd) and click on Tax Calculators and then 1040 Tax Calculator. Very easy to use.

[daca55]

Now that you’re married you really only have two options. Either file a married joint return or married and filing separate. The IRS does not like it when married people file separate and if you do file this way you do not get the same benefits that you would if you filed a married and joint return. You cannot file single now that you are married. Your best option is to file a married joint return.

[SHIBUMI]

If a women goes to prison for 1 year and then gets out can/should she still file
a tax return . No income........can she claim Child care Tax Credits, etc....thanks

That's a good question - and a step I do for my clients. The individual items - 1099's, W-2s, capital gains need to tagged as taxpayer or spouse. There is a option/ form you then elect to split the items and see if a tax advantage is gained by filing jointly or separately. Very rarely is there a benefit to filing separately, Some items are lost - such as a child care credit - when separate returns are filing.

Some married couples file separately because the spouse doesn't want any liability if their significant other may haves underreported income or not reported income at all.

Some file separately because they don't want their spouse to know their income!

[Villagesgal]

We always file married filing separately with both paying less this way. Taxaide will do it both ways for you to see which works out best, but they don't like to, you have to insist. Every year they tell us it's best to file married filing jointly, we tell them in our case no it isn't, they then do it married filing separately and always seem to be surprised that we are right.
So yes if you insist, they will do both ways and let you know.

[retiredguy123]

We always file married filing separately with both paying less this way. Taxaide will do it both ways for you to see which works out best, but they don't like to, you have to insist. Every year they tell us it's best to file married filing jointly, we tell them in our case no it isn't, they then do it married filing separately and always seem to be surprised that we are right.
So yes if you insist, they will do both ways and let you know.
I wouldn't use a tax service that didn't determine the best way to file, even if they are free. That's their job.

[Peachbelle]

New wife (married in 2024) and I will be going to Villages Tax Aide for our tax preparation. From my research, it appears filing jointly is the best method. Since this is both our first time filing jointly, should we do both a joint return and individual returns to see what method gives us the lowest tax liability? Is so, will they do both for us ?
Higher deduction for married. Unless one of you can itemize do married.

[Bill14564]

We always file married filing separately with both paying less this way. Taxaide will do it both ways for you to see which works out best, but they don't like to, you have to insist. Every year they tell us it's best to file married filing jointly, we tell them in our case no it isn't, they then do it married filing separately and always seem to be surprised that we are right.
So yes if you insist, they will do both ways and let you know.

I wouldn't use a tax service that didn't determine the best way to file, even if they are free. That's their job.

I wonder what percentage of married filers benefit from filing jointly. Apparently some do, but looking at the rules they would seem to be the exceptions. That being the case, what position should the paid preparer take?

1. The customer is always right even if they are wasting my time
2. If the customer had enough experience to make the call then they wouldn't need to pay me to fill out their taxes
3. I charge by the hour or by the return so it's no loss for me if the customer wants to pay me for twice the time or three times the number of returns

Obviously, a tax preparer won't know your special case the first time they meet you. It shouldn't be difficult to explain why you think filing separate will be more beneficial. At that point if the preparer disagrees or still refuses then it makes sense to find someone who will work with you. But, it shouldn't come as a surprise that the professional might question whether can't/won't fill out their own taxes really knows more about the tax code than he does.

[Singerlady]

Been there and did that. Your accountant will probably say file jointly. Try it. Easy.

[PersonOfInterest]

We always file married filing separately with both paying less this way. Taxaide will do it both ways for you to see which works out best, but they don't like to, you have to insist. Every year they tell us it's best to file married filing jointly, we tell them in our case no it isn't, they then do it married filing separately and always seem to be surprised that we are right.
So yes if you insist, they will do both ways and let you know.

Married filing separately and living together will not produce less overall tax unless there is an unusual situation or the return is done incorrectly. You'd have to both be itemizing deductions or both be standard deduction. That alone makes it difficult to have a scenario where the total tax paid is less. What unusual situation do you have that would tip the scales? Or who are you getting to incorrectly file your returns?

[CoachKandSportsguy]

Married filing separately and living together will not produce less overall tax unless there is an unusual situation or the return is done incorrectly. You'd have to both be itemizing deductions or both be standard deduction. That alone makes it difficult to have a scenario where the total tax paid is less. What unusual situation do you have that would tip the scales? Or who are you getting to incorrectly file your returns?

Although true that filing jointly pays less tax than two married filing separately combined tax payments, but there are reasons to file jointly.

The tax planning strategy of looking at future year implications of tax status now, would include future IRMMA penalties for one or both filing separately. . Remember that the biggest IRMMA penalty arises from filing jointly and then filing single with the loopback period.

So couples where future changes in tax status might want to consider filing separately to avoid IRMMA in future years. . .

remember, strategy is not about today, strategy is about the future events that may have adverse impacts if today is not done optimally.