By herself, your wife would not owe any federal taxes. But
since you are married, and file jointly, then your total
income is considered.

Going forward, you can either have your wife instruct her
employer to withhold federal taxes, save the money that you
figure you will owe, or increase your federal withholding.

My choice would be to calc the end result and set that money
aside during the year. Let it earn interest for you, not
for the IRS.

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"Andrew" <noemail[at]noemail.com> wrote:

- quote -

You'll have to compute things both ways to determine which
method, joint or separate returns, results in the less total
tax. Don't forget to include the state in your
calculations, and remember that you both must use the same
method of deductions, itemized or standard.

Phil Marti
Clarksburg, MD

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"Andrew" <noemail[at]noemail.com> wrote:

- quote -

I agree with that statement. The tax tables would indictate
zero tax.

- quote -

You don't provide enough information here to answer your
question. Do you itemize? Do you have non-salary income,
such as dividends, capital gains, etc.? How many
withholding allowances are you claiming on your salary?

Is your wife's income considered to be self-employment
(reported on 1099 instead of w-2)? If that is the case, it
is actually the self-employment tax that is catching you.

My 2004 data was similar to yours, total gross income was in
the 82k range, but our salary split is closer to 56k and
26k. We itemize, about double the standard deduction
amount. I used the worksheet on the back of the W-4 form.
My paycheck is at married 2, hers is married 0. This comes
out about right, slight refund in 2004 because I
over-estimated my capital gains.

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Andrew wrote:

- quote -

If she elects to file a separate return (her right of
course), then no federal taxes for sure.

HOWSOMEEVER! The fact you're married, and you're making
what you are, should result in your (separate) tax being so
much higher than if y'all had filed jointly.

In a nutshell, do it together. (Hmmm. good advice in other
cases, too.)

ChEAr$,
Harlan Lunsford, EA n LA

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My wife has a work from home job and last year she made $3,963.11. The
company she works for took State Taxes out but NO Federal Taxes.

I made $86,338 ($82,326 if you add 401k).

Should we be filing a Joint return? My wife says that she doesn't make
enough to pay Federal Tax and the company she works for says the same thing.
However, it seems when tax time comes around we get burned for not having
Federal Taxes taken out of her checks.

Just trying to figure out the best way to handle it now and going forward.

We don't deduct a Home Office for her but we do take non-reimbursed job
expenses for supplies.

Thanks in advance.

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