Wife and I are getting divorced as we speak. Should we each file a separate return or should we still file together? We are amicable but the petition was submitted to the courts on 12/26ish. This is in WI. The earliest this will be finalized is April assuming things go quickly.
If things are cool with the ex then I would recommend you use the same tax preparer and see what method provides the most benefit.
We typically do the return jointly, then run a filing status optimization to see which way provides the most benefit.
Things get messy when you get back a greater joint refund, and then the question comes back, well can you tell us who should get what % of the refund?
If you were legally separated and living apart there is the potential to both file as single, but this is a bit of a gray area and you should read up on the laws and determine your risk tolerance.
Not sure if there are kids in the mix but the HOH and single can really provide the maximum tax savings here.
How can I lower my taxable income enough to claim my student loan interest expense? This is the first year I've exceeded the income limit and I'm pissed about not being able to write down the $4000 interest fee.What are some common tax deductions the online filing softwares usually miss? Anything we should keep an eye out for?
Depends on how big the gap is, but I'm going to assume there is no legitimate way to close that gap. Student loan interest deduction is capped at 2500.
Do you have a high deductible health insurance plan? Are you covered by a retirement plan at work? If no to either of those you can look into funding an HSA or IRA.
Phaseout starts at 65k, ends at 80k. If you were at 85k and did an IRA contribution of 5500, it would lower your income to under 80k, but due to the phaseout percentage your student loan interest would be limited from 2500 to $82. Hardly worth the 5500 investment.
Depending on your student loan interest rate I would probably recommend paying that off as a top priority. Guessing its in the 7-8% range.
married, wife+child dependent on me, made first mortgage payment in dec 2016, lol
not sure if we are going to file married/separate or married/joint yet. H&R fees may be through the roof this year.
Same as 2 above, prepare a joint return and then run the filing status optimization.
9 times out of 10 it will save you money by filing married filing jointly.
as we always tell clients... getting married was the worst tax decision you can make, especially with one child in the mix you qualified for Single status on one return and Head of Household on the other.