Have a Tax Question? Ask a Tax Expert
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.If you file as joint with standard deduction your tax liability would be $37,866. You would need to subtract each of your withholding from the $37,866 to see if you would receive a refund or have a balance due.Generally joint is better but I would need a break down of your wages separately to fully advise.
Each spouse is held jointly and severally liable for the tax on a jointly filed tax return. For this reason some prefer to file separate.
Lets say I make 200k and he makes 120k for example
we run our own company
Ok one sec please..............
You would have a tax liability of $52561, and he would have $24533, jointly your liability would be $76355, you would save a little more than $700 if you file joint
and what are some possible deductions that can be made
That is all standard deduction and not itemizing. If you own your own home you woudl want to look to itemizing your deductions with , mortgage interest, taxes, charitable gifts, state taxes
Filing a separate return provides relief from joint liability for taxes. However, married taxpayers who file separately are not eligible for many tax deductions and credits, and have higher tax rates. In general, it is more advantageous to file a joint return.
what about college
Yes, for either the cost or interest on any loans.
ok if not loans
say you buy it outright
is it still deductible in some way
Not for personal use no.
so only if its on a loan
No only if it is used for business or work
and what if you buy college outright
say if its $2000
would any of that be deductible
I see, it normally would but at your income you would not be allowed the full credit. The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels. These income limits are higher than under the existing Hope and lifetime learning credits.You would see very little if any of the education costs as a credit at the income level you stated.
ok if its 160k im reporting jointly
what percentage of it would be deductible
All the $2000 if that were the case.
You are most welcome