Okay. I’m using Turbotax Online to file my taxes AND my ex’s taxes as well. We’ve agreed to split whatever refund(s) we get. (We’re not divorced yet.)
I can’t figure out who should take the kids as deductions, who should take the interest on the house, and who should take the property tax. I’ve been doing dummy forms for so long, and in so many permutations, that my head is spinning.
It breaks down like so:
His stuff: Income - $46K
Fed Tax withheld: 6K
SS Tax: 3K
My stuff: Income - 18K
No taxes or anything withheld.
I have an older son who I can claim as a dependent.
I’m an independent contractor (paper carrier) so I think I have to pay self-employment taxes, which appear to be about $2300. I can’t itemize enough to make it worthwhile, unless I include the interest/prperty tax.
I plan to file Head of Household. I think he should file Married Filing Separately, as he doesn’t live here.
I’m thinking her should use both kids, the interest, and the property tax to increase his refund, or I should use one kid just to make sure that I don’t end up OWING money.
Man oh man. This was a lot easier when we just ignored our taxes altogether.
Well, for starters, you have to figure out your filing status. If your husband lived with you at any time for the last six months of the year, you won’t be eligible for head of household. Then, filing jointly would be the way to go, as the tax rates are lower than filing separately. As for how to split up the refund/liability, that’s tricky. You’d have to agree on a fair ratio. Maybe the 48:18 ratio, adjusted by who spent what on house, support of child, etc. In figuring out the ratio, do not count withholding or amounts already paid as (estimated) taxes until you figure out what your tax is.
If you do qualify for head of household, then his income won’t enter in to it, at least for your return. At $18K, and if you supported you child, you ought to get some earned income credit.
You do have a headache on your hands. I sympathize, as I and my spouse had to figure out a somewhat similar scenario, and we got into a big argument about who should be responsible for the higher bracket that having two incomes put us in and who was to pay for the other’s unearned income. We solved it by filing separately–which costs us both more, but we are both basically nuts.
I am sure a smart tax person will be by to straighten us both out.
Good luck!
