Ok, here's the deal. Wife and I both claim 0, we own a home, we get f***ed in property taxes, etc etc, and somehow last year we owed over a thousand bucks. F*ck that, right?

 

Well, this year, even with a $900-some credit (30% back on a 95% energy efficient furnace) and tons of deductions (almost $30k worth), we were going to owe over a thousand bucks again!

 

I say, f*ck that, right?

 

So I started doing some research and happened upon suggestions that we file married, filing separately, since we have no children yet.

 

I'm using Turbo Tax online, and when I switched from joint to separate the total owed (fed and state) went from owing $1,000 to getting almost $4,000 in a refund.

 

Obviously, this raises a bunch of red flags for me. Does anyone out there with knowledge of tax law (not bird law) or access to said knowledge have any information for me?

I don't know your situation but there are some situations where separate filings will get you back more. There's not quite enough info here for me to give a definite answer.

 

Is the house in both of your names? Do you have the deductions split by who has them? Is one income a lot more then the other? Etc.

 

Be careful (which is why you're asking, I know).

 

The tax software will generally always err on the safe side, but garbage in gets garbage out. The area I would look at is are both of you taking a full deduction that only one is entitled to, or onoe that should be split in half.

 

In your situation I would take your last couple years returns to a tax expert and see what they come up with. You just saw what could be a $5k difference, spending $200 getting an expert seems cheap.

I don't know your situation but there are some situations where separate filings will get you back more. There's not quite enough info here for me to give a definite answer.

 

Is the house in both of your names? Do you have the deductions split by who has them? Is one income a lot more then the other? Etc.

 

Be careful (which is why you're asking, I know).

 

That is the big thing... You both can't claim the same deductions, such as the house and the new furnace.

I don't know your situation but there are some situations where separate filings will get you back more. There's not quite enough info here for me to give a definite answer.

 

Is the house in both of your names? Do you have the deductions split by who has them? Is one income a lot more then the other? Etc.

 

Be careful (which is why you're asking, I know).

The house is in both of our names. She makes 10% more than me. The deductions are not split yet. I was considering putting the house on her taxes and then just doing mine straight.

 

Can I just put the house on her taxes without any ramifications?

That is the big thing... You both can't claim the same deductions, such as the house and the new furnace.

Yeah, I was thinking I'd put them on just one of the returns and the other return would simply be based on income. It's unfathomable that I should owe $1k each year.

 

I've reached out to some professionals, but if anyone else has more information or experience doing this, it'd be appreciated. I figure if I cross all my t's and dot all my i's, even if I get audited there's nothing much to worry about.

Don't forget about meeeeeeeeeeeeee

Probably would be best to just go to a local tax guy who can go over everything in detail. I can give you the name of the guy my dad handed his clients over to when he went to the IRS a couple of years ago, if you want.

Probably would be best to just go to a local tax guy who can go over everything in detail. I can give you the name of the guy my dad handed his clients over to when he went to the IRS a couple of years ago, if you want.

 

Eh, there are at least two d-bag CPA's on here...

Eh, there are at least two d-bag CPA's on here...

 

I know, it just seems to me that without him sending you a bit more detailed information, it'd be hard to make a good, solid recommendation. Then again, maybe that's just because my dad gives the "I'm not a financial advisor" disclaimer even to me if I ask him something.

 

Besides, kap's not local

I know, it just seems to me that without him sending you a bit more detailed information, it'd be hard to make a good, solid recommendation. Then again, maybe that's just because my dad gives the "I'm not a financial advisor" disclaimer even to me if I ask him something.

 

Besides, kap's not local

 

I just wanted the chance to call Jason and Kap D-bags

I just wanted the chance to call Jason and Kap D-bags

 

 

Jason's not a CPA... yet.

Jason's not a CPA... yet.

 

Off-topic... did you parents get taken care of?

Off-topic... did you parents get taken care of?

 

wtf, that sounds like a hit for the inheritance.

Off-topic... did you parents get taken care of?

 

 

Yea, ended up going through IAH instead... but the car was a popcicle when they got back to IND I guess. Two hours to get the ice thin enough to get in the door.

Taxes become a pain in the ass when you have several investments, I had something like 76.8 shares of BP (total between 2 accounts) and transferred them to my main brokerage account, ironically to make it easier to keep track of in a single account. You can only transfer full shares of a stock so they cut me a check for the partial share, one was worth $29.96 and the other $19.09 (but they gave it to me in one check). It actually didn't even occur to me at the time that this $50 bucks or so was taxable. So I had to enter those miniscule amounts, and the tax withheld, and THEN find the cost basis, which wasn't even on my 1099. How annoying, I have no f***ing idea what the cost basis is so I had to look up what the cost of BP stock was on the date of the last dividend before I transferred the shares. A friend of mine told me though "as an auditor I'd say you're safe."

 

At least next year, I'll have ONE 1099-DIV and not 3 or 4 like I was doing.

Edited February 13, 201115 yr by lostfan

Taxes become a pain in the ass when you have several investments, I had something like 76.8 shares of BP (total between 2 accounts) and transferred them to my main brokerage account, ironically to make it easier to keep track of in a single account. You can only transfer full shares of a stock so they cut me a check for the partial share, one was worth $29.96 and the other $19.09 (but they gave it to me in one check). It actually didn't even occur to me at the time that this $50 bucks or so was taxable. So I had to enter those miniscule amounts, and the tax withheld, and THEN find the cost basis, which wasn't even on my 1099. How annoying, I have no f***ing idea what the cost basis is so I had to look up what the cost of BP stock was on the date of the last dividend before I transferred the shares. A friend of mine told me though "as an auditor I'd say you're safe."

 

At least next year, I'll have ONE 1099-DIV and not 3 or 4 like I was doing.

 

 

 

Ignorance is not an allowable deduction.

I'm not certian about total tax liability but I can say when I went from married filing jointly to single, I was much happier :-)