The company my husband work for years suddenly went out of business. He has not been working since December 2006. He never claim for unemployment. So far I am the only one paying taxes. We got married in April 2007. Questions.
1. He has been filling his taxes for 15 years now all of sudden his income is zero. Can he be penalties for this.
2. How should he file his taxes?
3. Do we need to file our taxes together.
4. If we file as joint. I am going to owe the IRS.
THANKS
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24. December 2009 at 10:48 pm
It may be to your benefit to walk into a business that provides a reliable tax service. Write down all your questions beforehand. Bring them with you.
24. December 2009 at 10:48 pm
1) no, there are no penalties to him for his income being zero this year
2) he doesn’t have to file
3) you should file a joint return – you’ll pay less tax that way than if you file as married filing separately, your only other option
4) The only way you’d owe is if you would have owed anyway if you didn’t file joint – and if that’s the case, you’ll owe less by filing joint
other question though – why didn’t he file for unemployment?
24. December 2009 at 10:48 pm
Your math is wrong.
If you file MFJ with your husband, you still get the standard deduction of $10,700, two exemptions ($6800) and better tax rates.
If you file MFS, you get a standard deduction of $5350, two exemptions ($6800) because he made $0, and the worst tax brackets and limited credits.
If you would owe on an MFJ return, you would owe EVEN MORE on an MFS return.
24. December 2009 at 10:48 pm
There are no penalties for not owing tax.
Since you are married, you would either file MFS, in which case he would not have to file, or file MFJ. You would almost undoubtedly have better results filing MFJ, even though he had no income himself.
You would have both a higher standard deduction and an extra exemption if you filed MFJ as opposed to MFS. You should do much better as MFJ.
24. December 2009 at 10:48 pm
1. no
2. he doesn’t
3. yes you should
4. no, you should get a larger refund