- Oct 30, 2000
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Originally posted by: cKGunslinger
Originally posted by: EagleKeeper
The minimum income threshold where Federal Income Taxes apply is usually around 8K.
Above that some tax would be due. However, the income level above K could be reduced by certain credits.
If you are due a refund, you do not have to file. Uncle has no problem with free money, just like you have none.
Here's a Q:
Me, wife, 2 kids, mortgage, student loans, itemized > standard deductions. After all is said and done, I think my taxable income gets reduced down to ~$45k
We always filed jointly. This year, she will have earned ~$5K in income, but will have paid no taxes whatsoever on it. I'm not sure if she's even getting a W2.
Since I have all our other tax info loaded up in TT-Online, it's showing a ~$1500 rebate. When we tack on her estimated earnings, that drops to about $700 refund.
Would there be any other method of filing to get rid of that drop? File separately, giving me all the deductions? Anything like that? I didn't see an option in TurboTax to model that kind of "what if" scenario..
that is a problem with the online S/W - inability to manipulate what- ifs.
Filing separately will allow here to avoid the taxes. You need to determine if the loss of her exemption will offset the additional income drop.