Tax Question

[BethAnn and Omar 42]

Like Dwheels said every consulate is different. Was never an issue for us whatsoever but I am going to amend the return as was so kindly suggested by certain vj members. People do make mistakes so let's try to ease up on judgements.

[quitepainful 56]

It's so easy to file MFS, I'm not sure what the benefit of filing single is, even for convenience purposes. As I said, H&R Block will allow you to file electronically while leaving the SSN field blank for the foreign spouse. I can see why a CO would question filing single. At this point, it just looks like you're trying to hide your marriage.

that is the worst tax bracket of life... i refuse to file MFS... i would rather file single than to take that option... no thanks... i would get reeeemed on taxes...

[Ketsuban 1,034]

that is the worst tax bracket of life... i refuse to file MFS... i would rather file single than to take that option... no thanks... i would get reeeemed on taxes...

My husband tried both single and MFS before submitting it as MFS. Both times he owed $45. It would have made no difference to us financially and from what I've read on VJ, they both have the same allowance rate. Could you elaborate on what you mean? In the UK, we don't file taxes unless we're self employed, so this is really the only exposure I've had to tax returns.

[quitepainful 56]

Yes, no problem, what i am saying is that based on the following tax brackets:

http://www.bankrate.com/finance/taxes/tax-brackets.aspx

you can see as you increase in the brackets, i end up paying too much tax... e.g., since it is at a higher rate, for less money...

if you do the math using the following you can see how things change as you move up in the tax brackes:

http://www.bankrate.com/calculators/tax-planning/quick-tax-rate-calculator.aspx

Edited January 27, 2014 by quitepainful

[aussie_jason 195]

Yes, no problem, what i am saying is that based on the following tax brackets:

http://www.bankrate.com/finance/taxes/tax-brackets.aspx

you can see as you increase in the brackets, i end up paying too much tax... e.g., since it is at a higher rate, for less money...

if you do the math using the following you can see how things change as you move up in the tax brackes:

http://www.bankrate.com/calculators/tax-planning/quick-tax-rate-calculator.aspx

I don't think you understand how tax brackets work, either that or your math is off. If you are married and your spouse is not earning an income then you will pay much less in tax, say for example you earn $15k as single (and lets ignore you don't pay tax on the first X $) then you would pay 10% on the first $8,925 and then for the remaining $5,075 you would pay 15% tax, if in the same situation you filed as married then you would only pay 10% for the entire amount.

It gets a little more complicated as you go further up the tax brackets but I'm pretty sure you will always work out at least the same and most likely better off with filing as married as you go up, remember you only pay the quoted tax rate for the portion of your income that is within the bracket so that means as married you pay a lower rate for a larger portion.

[quitepainful 56]

I don't think you understand how tax brackets work, either that or your math is off. If you are married and your spouse is not earning an income then you will pay much less in tax, say for example you earn $15k as single (and lets ignore you don't pay tax on the first X $) then you would pay 10% on the first $8,925 and then for the remaining $5,075 you would pay 15% tax, if in the same situation you filed as married then you would only pay 10% for the entire amount.

It gets a little more complicated as you go further up the tax brackets but I'm pretty sure you will always work out at least the same and most likely better off with filing as married as you go up, remember you only pay the quoted tax rate for the portion of your income that is within the bracket so that means as married you pay a lower rate for a larger portion.

are you telling me i dont know how tax brackets work ? LOLOL i am a CPA... ketsubum was asking about how there is a differnece as they pay the same amount and i said for me it would be horrendous to marry file seperately... i would rather pay the single rate as the higher you go in tax brackets i pay more and more tax... i was trying to explan that single/MFJ has wider tax brackets rather than MFS...

[aussie_jason 195]

And now I will hide until I have drunk more coffee and can actually read before joining a conversation, my apologies! Carry on... Although I think others may be confused by the acronyms being thrown around but yes I completely agree with you, filing as MFS makes no sense.

[quitepainful 56]

And now I will hide until I have drunk more coffee and can actually read before joining a conversation, my apologies! Carry on... Although I think others may be confused by the acronyms being thrown around but yes I completely agree with you, filing as MFS makes no sense.

No worries mate, we are all here to help each other through this journey!

[aussie_jason 195]

The only time MFS may make sense is if your spouse doesn't have a SSN and for some reason can't apply for a ITIN - http://www.irs.gov/Individuals/International-Taxpayers/Taxpayer-Identification-Numbers-(TIN)#itin otherwise you will always be better off as MFJ.