Today TaxMama hears from Susan in the TaxQuips Forum with an ever more common  situation. “My dad (age 88) is in a nursing home because my mom can no longer care for him. I wanted to know which nursing home expenses are considered medical expenses.”

Today TaxMama hears from Krissy in the TaxQuips Forum who needs help. “I am married with two children, low income and my husband owes back child support. Last year I filed separately and ended up owing taxes. I had to set up a payment plan with the IRS to pay it off. I’d like to know if I file jointly this year, will the refund all go to the child support agency? Or will it all go to IRS for my back taxes?”

Today TaxMama hears from Nora in the Tax Quips Forum with a common situation. “Two single taxpayers decide to share a home (let’s say a rental) and each has qualifying children.  Each maintains their own family expenses and share equally the cost of household expenses.  Can each claim HOH status? If so, would claiming two HOH with the same address flag the IRS?”

Today TaxMama hears from Fred in the TaxQuips Forum, with this problem. “My ex-wife and I were legally divorced in Sept. 2008.  For the tax year 2008, she filed as married, filing jointly.  She withdrew her entire 401(k) fund and was penalized for early withdrawal.  She now owes the IRS over $10,000. Because she filed as married, they are coming after me for the tax burden. What can I do?”

Today TaxMama hears from Michael in the TaxQuips Forum, with a brief question. “My wife and I are separated, although not legally. May I file a 2009 and 2010 tax return separately? Can it later be amended to jointly?”

Today TaxMama hears from Myra in the TaxQuips Forum with lots of questions. “I filed an extension. How should I file at year end? Single, married but filing at a single rate, or jointly.  My husband receives Social Security disability. I file from a K-1.  I have large amounts of deductions.  I also can claim my son who is disabled and lives at home. I provide for him for over six months of the year.  I pay estimated tax but I don’t think I paid enough.”

Today TaxMama hears from Nancy in the TaxQuips Forum with several questions.  “I am to be married this year. I am going to file as married, filing separately (MFS).  Can I claim my husband since he is disabled and collecting social security disability? Also I understand that I cannot mix the standard deduction and itemizing on Schedule A.  What I choose for my 1040 has to be the same on his 1040 is this correct? Can taxes be deducted from Social Security Disability income?” 

Partners’ Filing Status Varies Federal to State, and State to State

Courtesy of CCH – This article is SO important for all domestic partners to read!

(RIVERWOODS, ILL., February 11, 2011) – Whether opposite-sex or same-sex marriage, civil union or domestic partnership, your relationship can have tax consequences, according to CCH, a Wolters Kluwer business (CCHGroup.com).

These tax consequences can be both beneficial and detrimental. And, for many people – particularly those in same-sex partnerships – they can just be confounding, as federal law does not recognize same-sex marriages or civil unions while a growing number of states do. As a result, these couples often find they need to complete taxes one way for their federal income tax returns and another for their states tax returns.

Today TaxMama hears from Robyn in the TaxQuips Forum, who needs to make a decision. Essentially, it boils down to should my boyfriend and I get married this year or not, in order to get the best tax advantage. They have a child together – and one that is just hers. Read the details here.

Dear Robyn,

 Yes, it’s probably time to get married  – at least for your child’s sake.   

As of right now, since you are not married, you can each file as head of household, if your child’s father claims the child you have together – and you only claim your daughter. Since he will have only worked full time for a few months, the Earned Income Credit might just be substantial – along with one of the Education Credits or expenses.  Pray that Congress extends the American Opportunity Credit so he can get a refundable credit for his tuition in 2010.

If you get married this year, your combined income might eliminate some of this benefit.  But it’s hard to give you good advice without numbers.

 So…see if you can invest in a two hour consultation with a tax professional to run some of the alternatives to see which works out best for you.  If you can’t afford it, do it yourself.  Run the various scenarios yourself using TurboTax’s TaxCaster or H&R Block’s 2010 Tax Estimator.

Test for:

Him Single – You Head of Household.

Him Head of Household – You Head of Household.

Married Filing Jointly

 That will help you decide about this year.  If it turns out that you are better off being single for 2010,  then go ahead and get married in 2011.  Good luck!

And remember, you can find answers to all kinds of questions about getting married and other tax issues, free. Where? Where else? At www.TaxMama.com.

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