Hi, so sorry --- First of all thank you for what you've done for the country
Let me take a look at the Maryland statutes ... I know on the federal side you're proverbially "hosed." BUT it IS only income and depending on your other income, may only be taxable at t pretty low rate ... and finally, you CAN apply for an installment agreement online to pay that tax bill (again you'll only owe the tax ON it - that 75 is not the tax bill) over time
Are you there?
I only make 35210 a year and I have four children.
hang with me here ... I'm pullling up the MD statute law on this
ahhh that helps too, hang on
married filing jointly?
No head of household
k hang on ... first let me do a tax forecast ans see where that puts you
I am not married.
an't be for H of H
DO you itemize or take the standard dedutcion?
Yes I claim a lot of Itemization, like medical, dental, and whatever I qualify for.
I don't pay much for daycare. My youngest is 7 and oldest is 15
OK can you ball parf it for me? I'm running a quick mode to see what your taxes look like
Here's what it looks like with a standard deduction (people take the standard or the itemized, whichever is higher) and without the additional income from the debt forgiveness
650 for the year in child care, dental/ medical I have paid out around $5K this year and I pay dental
Is this including the 1099C?
So they add the tax pa?rt of the 75K to the income
No, ... this tells us a couple of things ... (1) your taxable income is 17,000 that puts you i the 15% bracket
so that means that the additional tax will be 75,000 * .15 = 11250
Is that good for this situation?
Yes that means that with the already negative tax owed because of the child care credits, you only owe around (I shouldn't say only) 10,000
which, again, can be paid over time
given your situation you'll qualify for a payment plan easily
also, tht'e no withholding
do you have a w-2?
So I usually get back over 10K in taxes will that offset?
No not handy.
I won't get back anything or owe anything?
that's the missing piece, but if you know that you get back around 10,000 that puts you at about a wash
+- a few dollars, but generally yes
Ok and is that for both outcomes for state and federal (total)
How much do you normally get back on state?
2 to 3K
Federal around 8 to 9K
yep, it looked like you were at about 1500 owed, that puts you at a small plus, for state
I got back over 12K all together this year
That's right at Break-Even
And there are no loop holes being a disable Vet.
Have you ever heard of this program?
Sorry, nothing at the Federal level I know, and I could not find anything on the MD (state level) .... (hopefully having all the facts will let you "see aruond some corners"
The VA income non-taxed
All of that helps ... but again that's part of the refund you get... and it's taking that to offset
If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.
HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.
oh I see your typing ... I'll wait
Ok, I usually do it on turbo tax, but I have to go to a tax professional. Can you recommend any?
I'm sorry, the site won't let us make recommendations ... but if you use the interview method Turbotax does a good job of asking you for all the possibilities (getting the child care credits, etc)
Gotcha!! Thank you for your help.
I would look for someone that specializes in Military .... Google "tax preparation for veterans in Maryland"
Have a good evening.