Any Accountants or Tax return Guru's on here?

[NavyDood_ F/A18_Mech]

Here's my question:

My wife and I got married on 06 Dec 99.
Her parent's are going to claim her for their tax purposes because of college. They supported her schooling all last year. I have no problem with this. Only seems fair.

Now, should I claim a tax form as Single? Or do I have to claim married or married individual?

Jim

Jim

[Toadman]

You have the option of filing Married Joint, and submit a joint tax return, or filing Married Separate with separate tax returns.
I'm no accountant, but if her parents supported her for at least 6 months last year, they can take the dependent deduction. Even though you're eligible to get the spouse deduction, her parents would probably get the better deal, so you might end up filing Married on separate returns with only yourself claimed for last year. It'll be better for you next year. BTW- Congrats on your 2 month anniversary! When are you having rugrats?(Another deduction) http://www.sysopt.com/forum/wink.gif

[NavyDood_ F/A18_Mech]

Hehe Toadman.....

The rugrat is gonna be here in May. http://www.sysopt.com/forum/wink.gif

Yeah i figured filing married seperate would be the best way.

Thanks,
Jim

[This message has been edited by NavyDood_ F/A18_Mech (edited 02-07-2000).]

[Toadman]

Well again, Congratulations DAD! Gonna raise
a navy brat, bottle-fed JP-5?

[Chef Mark]

Congrats Dad

In a former life (now in marketing) a was a tax manager at one of the big CPA firms.
In your situation you are basically stuck. Her parents claim her as a dependent and you, as Toadman said, can file married filing jointly or separate.

The issue here is whether or not she has any income and how much it is. The problem is that this income could put you in a higher tax bracket if you file jointly. The only way for you to determine this is to go ahead and complete the federal tax returns both ways to see which is better.

Using tax software like Turbotax or Taxact or whatever will make this a lot easier [note: I happen to use TaxAct after years of using Turbotax - I don't work for either co.}.

One other issue to be aware of is what happens at the state income tax level and whether your federal filing status limits your choice at the state level. The advice is to find out what is the best way to file at the federal level then review the state rules to see how badly you get screwed.

Take my advice for what you paid for it - I've been out of public accounting now for about 6 years and just prepare returns for my family and in-laws.

Email me if you have other questions or post them here and I will try to help you as much as possible.

Chef