We just got married last month. I already owe this year, because when my son got a job and moved out last year, I forgot to change my witholdings at work (my fault). I was claiming Single 5 (Head of Household).\n\nIf I change my status to Married at this point, will I be taxed more heavily or will it be better for me?  What would work best for me?  Thanks.
204141
You should probably change your withholding so that it is more in line with your new situation.  If done correctly, it will end up so that you get more in your paycheck each week, but a smaller refund next year.\n\nBecause you are now married, you need to either file "married filing jointly" or "married filing separately".  It is tough to tell whether your tax will go up or down without more information, it you were going from single to married, total tax between you/spouse would probably go down.  But since it's HOH->married, it might go up.\n\nTypically, couples are better off filing jointly than separately, but that must be decided based on your circumstances.  I'd try both ways, and file whichever way gets you the lowest taxes.
432080
This is a very confusing subject and the laws have recently changed.  I just taught a tax course and we went over this in excruciating detail.  I won't go into all the permutations on who can claim whom.  Instead, I'll stick with your situation.\n\nAssumptions:\n\n1) Aside from you and your boyfriend (whom I assume is not the father of your children), there are no other adults living in the household who are related to either you or the children.\n\n2) Your children lived with you for at least 6 months, but did not live with any other relatives for at least 6 months.\n\n3) You earned less than $3,300 (probably nothing, right?).\n\n4) Your boyfriend paid for over half of your living costs including rent (or the fair value of rent if he owns his home), food eaten in the home, clothing, utilities, and college expenses!\n\n5) You and your children all lived with your boyfriend for the entire year.\n\n6) Your boyfriend paid for over half of the cost of living for each and every kid.\n\nIf all of these are true, your boyfriend will be able to claim all 3 of you as dependents for 2006.  These type of dependents are called "qualifying relatives".  Don't let the term "relative" throw you.  Anyone who lives the whole year with someone can (assuming other things are true) be claimed by them.\n\nSince your children are his "qualifying relatives" and not "qualifying children", your boyfriend will NOT be able to use them to take advantage of the Child Tax Credit, Additional Child Tax Credit, Child Care Credit (daycare), nor Earned Income Credit (EIC).  In addition, regardless what you may have heard, neither you nor your kids allow your boyfriend to file as Head of Household.  Anyone who is NOT related to the taxpayer can NOT qualify them for Head of Household.\n\nNow, if you happen to get married by December 31st, you will both file as Married Filing Jointly, you will be able to claim all the credits, you will get a higher standard deduction, and you will be able to write off college tuition and fees.
37854
You work and earn $50k, and owe, according to your estimate, $15k in taxes. \n\nIf I asked you today if you would do a job for me that would take you several months to complete, for $50k and you could then get paid in one of two ways:\n1)$35k right when you are done, or \n2)$30k four years from now, plus 80% of what interest is earned between now and then (20% are the taxes on that portion)\n\nWhich would you choose?\n\nYou would be foolish to choose option 2. Obviously the circumstances that got you there are not the same, but indeed you would be choosing the equivalent. Think long and hard before you take a 10% penalty without flinching.
460941
Congratulations!!! Some mortgages allow you to have payment breaks or you could just enquire about paying the interest off only... I do not know of any government benefits that you could apply for regarding your mortgage.. Don't forget you may be able to claim family tax credit as well.. \nI am sure that many couples feel that they can not afford children but you will find a way.. Good luck for the future..
551315
The Inland Revenue did this to me too when i reapplied for my tax credits in April of this year. They said i had earned £2,500 more than i had declared, and through this i owed them the money and they have stopped my credits until April of next year. I too am a single parent, they tell us to go back to work and we will benefit but we dont at all. What we earn we end up paying back out. I used to get help with my rent when i first went back to work too,  now that has stopped and im to pay out the full amount of rent which is £98.00pwk. Personally i would be better off on the social, although i dont want to be part of the people that take money off the state to live on and receive handouts. I  wanted to do right by my family and earn my way through life. Good luck hun hope all goes well for you but its a crap system dont you think. xx
636456
I would contact your local Tax Collections office and inform them of this new information... be sure you get the name of the person you spoke with!
458675
you are not eligible to pay tax if your total earnings are less than your personal allowance, which is 5035 for this year.if you are earning up to 5035 pounds then they will not charge you tax, if they do then you can reclaim that tax back.Similarly you can claimback for your excess deduction as well, for the last three years. hopes this satisfy your question
186561
The "marriage penalty" no longer exists.  So, it is no longer intrinsically better to file separately.  Some couples though, dependant on their holdings, may get a better deal by filing seperately.\n\nJust for the record, people who are getting divorced are not actually divorced.  They can still file jointly.  And if they own a home, they both benefit from the credit if they file jointly.  Otherwise, only one gets the credit.
36533
I filed anyway one year, when I only made like $6,000-$7,000 and I got back over $600. I was very surprised. You might do it online for kicks just to see if you have anything coming to you. If not just leave it unfiled. Good luck !
198370
You need to declare where the money is coming from (the bank will require this information from you anyway), but you should not have any problems. As far as taxes, I believe this would count as additional income for you and would have to be declared on your next income tax form. You could get more detailed info with a bank, the Treasury dept. and IRS. Good luck with your new house!
34919
I would have your taxes prepared by a professional this year. It will help you with this unusual situation. Try H&R Block, if you don't want to use them, perhaps they can just answer the question over the phone.
225894
lol, I'm with Teri. I would say contact a tax professional in the state that he will be filing and they should have those answers, as state tax laws vary state to state. Sorry I couldn't be of more assistance. :)
662244
He should file now and you two start out fresh.  Keep separate accounts for now and both try to build up credit.  My husband had debt from previous marriage and it will effect you also.  Anything that shows up on his credit will affect you when you try to buy a house or both signatures are needed to make a big purchase such as a car.  Doesn't matter when it occurred.  I had to pay off my husbands utility bill from a previous marriage before the electricity could be turned on in our new place.
13374
If you are still living together you will have to file MFS (married filing seperately).  There are no tax advantages to doing it this way unless he owes back taxes, child support, or cheats on his taxes.  I would suggest keeping on your husband and filing together.  You cannot file single since you are married.  \n\nYou could file HOH if you have been seperated for more than six months and are caring 50 % or more for the children.
235790
Try using last years Federal Income Tax return.  If you claimed her as a dependent, you had to have put the number on your 1040.
204435
Your employer would withhold 25% for federal income tax purposes if the bonus was paid at a separate time as your regular wages.\n\nHowever, if your employer pays the bonus at the same time as your regular wages it would be based on your W-4 Form.  As of last year, IRS recently stated that they would not require an employer to submit the W-4 Form into the Service if more than 10 exemptions are claimed.  However, if IRS finds at the time you file your income tax return your withholding from your W-4 Form is not enough, they can notify your employer to change your withholding exemptions on your Form W-4.  \n\nTo conclude, first find out when the bonus payment is being made.  If the employer is going to withhold at a flat 25%, then changing your Form W-4 will make no difference.  On the other hand, you may want to change the W-4 Form before the bonus payment is made along with regular wages keeping sure that you send it with plenty of time for the payroll department records your changed exemptions before the wage payment.  You may want to change after the payment though so that you are not being withheld at a lower rate for the remainder of the year.  \n\nAnd, congrats on your bonus!!
417058
You would be better off being married, your taxed at a lower tax rate.  But...it depends on what each of your incomes are.  Look at the tax tables for single for what you make and then what she makes and see how much tax they would take out...then compare it to the tax table for both of you under the married filing jointly column.