Have a Tax Question? Ask a Tax Expert
You can earn up to $400 as a self employed individual before you have to file a tax return. Or up to the standard exemption ($3200 for 2005) or you don't have to file if you work as an employee for someone else. However, if you pay in taxes during the year, you will want to file so that you can get some of it back at tax time if you are due a refund.
Your tax rates depends on your filing status, dependents, credits and deductions. It is not based on the amount of money that you earn.
Let me know if you still have questions.
Since you are still married, you really only have two options - married filing jointly or married filing separately UNLESS you have been legally separated for a length of time. This doesn't sound like it's the case in your situation.
If you file as married filing separately, they will not garnish his return to pay your debt.
If you are self employed:
Your self-employment income should be reported on Form 1040, Schedule C or on Form 1040, Schedule C-EZ.
Your Medicare and social security taxes are reported on Form 1040, Schedule SE.
As a self-employed person, you pay your Medicare and social security taxes the same way you pay your income taxes. If you expect to owe less than $1,000 in total taxes, you can pay them when you file your income tax return. If you expect to owe $1,000 or more in total taxes, you will need to make estimated tax payments. These payments are made quarterly using Form 1040-ES. You will need to figure these taxes at the beginning of the year. To learn about figuring and making estimated tax payments, please refer to Publication 505, Tax Withholding and Estimated Tax.
You will be required to file as married filing jointly or married filing separately with your current husband. If you file as married filing jointly, he will need to file as an injured spouse or his portion of the return will be garnished along with yours.
I'm sorry. Maybe I'm not completely clear on what you want to know.
When I read it the first time, I thought that you were divorcing husband #2 and he was the one who was trying to help you. Was that wrong?
Please let me know where I have led you astray so that we can fix it!
Ok. That makes more sense. I truly think that the best thing that you can do is go ahead and file a joint return and let your refund be garnished and used to fulfill your debt. This will get you closer to paying it off.
If you don't want to go this route, your only other option is for your current husband to file as an injured spouse. This way, when you file, your portion of the return will be garnished and he will still receive his.
Make sense now?
If there is no refund to garnish, then you will have to fulfill your debt another way. If you are self employed, you will need to make estimated quarterly tax payments so that you can avoid an underpayment penalty.
Your support payments won't be garnished if there is nothing to garnish from.