Crissa wrote:Josh: This mostly has to do with being forced to file as single people, my lack of credible income, that we haven't qualified for any of the tax credits because we can't file as a couple...
Yeah yeah yeah I get that it's unfair.
But here's the thing - your numbers and the particulars of your gripes are not making sense, and I can't tell if it's just you spewing activist hype or if you really have been misinformed in a way that may be costing you thousands of dollars.
As per the 2008 tax tables, the lowest TAXABLE income at which a pair of single people pay 6k in taxes is with one of them having taxable income of $38,600 (owing 6k) and the other having taxable income of $0. That's taxable income, not Adjusted Gross Income, so you each get your personal exemption of 3500 and standard deduction of 5450 (but I think you own a home, so it probably pays at least one of you to itemize and that will make the number higher).
So to even have a combined federal tax liability of $6000 your minimum combined AGI for 2008 would have to be $56,500.
To even have a combined federal tax liability of 17k, it works out that your minimum combined AGI for 2008 would have to be $100,100.
But, that's the MINIMUM and your claim is that you are liable for that much MORE than a married couple, which strongly implies that that comparison is not against a zero tax liability, so you are implying that you as a couple earn substantially more than that. And judging solely by some of your prior posts I never figured you two for six-figure income types.
If so, congratulations, enjoy the good life and rue the hefty tax burdens that come with it.
If not, get your ass to someone who understands tax law better than you do, because they may be able to save you a big chunk of change.
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But I'm further inclined to believe that you're acting on misinformation when you say things like:
we haven't qualified for any of the tax credits because we can't file as a couple.
Please name any tax credit which can only be claimed by married couples?
Lemme run down the credits on the 1040 here in a lengthy spoilerized list
On Line 47, the [link=
http://www.irs.gov/businesses/article/0 ... 63,00.html]Foreign Tax Credit[/link] is independent of filing status.
On Line 48 the
Credit for Child and Dependent Care Expenses does require married couples to file A Joint to claim it (save for in cases of widows who remarry within the tax year), but it can be claimed by unmarried taxpayers who file as Head of Household.
On Line 49, the
Credit for the Elderly and Disabled again requires married couples to file Joint to claim it, but is again available to unmarried taxpayers who file Single or Head of Household
On Line 50, the
Education Credits includes the
- Hope Credit -for which the taxpayer cannot be married filing separately (Single, Married Joint, Head of Household and Qualifying Widower are all allowed to take the credit)
- Lifetime Learning Credit - cannot be married filing separately, all other status are allowed to take the credit
- Student Loan Interest deduction (this is misnamed, it's really an adjustment to income), but once again, the rule is cannot be married filing separately, any other status is legit.
- Tuition and Fees Deduction - again, cannot be MFS, any other status is allowed.
- Education Savings Bond Program - again cannot be MFS, any other status is allowed
- Business Deduction for Work-Related Education - any status is okay, although the income limits are tighter for MFS
- Coverdell ESAs, QTPs, Education Exception to Additional Tax
on Early IRA Distributions - I'm not familiar with these, but searching for "marriage" in that PDF yields no hits in the relevant sections, so I'm going to assume that martial/ filing status is irrelevant
On line Line 51, the
Retirement Savings Contribution Credit[/ur] is open to any filing status.
On line Line 52, the [url=http://www.irs.gov/publications/p972/ar02.html#en_US_publink100012085]Child Tax Credit (and the associated refundable Additional Child Tax Credit) are available to all filing statuses.
Then we get
Form 8396 for the mortgage interest credit, which is not limited by filing status.
Form 8839 for qualified adoption expenses is open to all filing status, but has certain additional requirements for the Married Filing Separately status.
Okay,
Form 5695 for the Residential Energy Efficient Property Credit does require joint occupants to each fill out separate forms save in the case of couple who are married filing joint. But the credit is still allowed for all filing statuses.
Form 3800, General Business Credit gets weird if your marital / filing status changes from year to year and you are using carryback or carryforward - but the credit is still allowed for all filing statuses.
Finally, we have
orm 8801, Credit for Prior Year Minimum Tax which has special rules for Married Filing Separately , but is allowed for all filing statuses.
(all links are to the IRS website, some are PDFs)
So, although income thresholds and rules may change based on filing status, there is not a single credit on the 1040 which can only be claimed by married couples.
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