Taxes

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Old 08-11-15, 11:17 PM
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Taxes

Can someone please advise me when filling taxes on what to do to keep from having my social security taxed at 85%.My wife works and makes around 60 to $65000 we have no deductions that we can claim other than the 2 of us and 1 dependent. My only income is my social security I am retired we file a joint return and when we file my social security is taxed 85%.I am 66 yrs old and my wife is younger by 9yrs.We have H&R Block do our taxes and takes about 15 min because of no deductions and have to pay alot.Any help would be appreciated.
 
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Old 08-12-15, 12:06 AM
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Is your wife depositing money in an IRA each year? If not, why not?
 
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Old 08-12-15, 12:08 AM
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You need to talk to an actual CPA that deals with taxes. HRB has good and bad people. It's the same answer though...they should run every scenario. Married filing Separately with her claiming the dependent and then you claiming the dependent see what the diference is between Joint filing. Filing separate in your case may be best since I doubt you get enough from SS to pay very much if any tax. (Unless you were making a lot of money when you worked.)

Unfortunately some tax "professionals" aren't.

I'm no pro, but I used to do lots of tax returns for people when I was in the Navy (years ago of course) and have always done my own returns except for one year and I got so PO'd at that place (big green statue waving at you ring a bell?) that I went back to doing it myself.

What about contributions to IRAs and similar? Gifts to spouses are also tax free I believe. Your wife can gift you money and neither of you pay tax. At least I think so, never been in a position to do it. Heck, it was even mentioned in the Shawshank Redemption, maybe that's why I looked it up.

How about a health savings account?

This is why you need a tax CPA not something like HRB or other tax preparer. A CPA will not only do your taxes, but they can advise you about the future. Too many tax preparers just punch in numbers and let the computer figure it out. Works for most people, but not all.

The place I mentioned where I had it done for "free". They didn't even know that AZ gives a large credit for military retirement pay. It took a week for them to sort it out and re-file an amended return. This is in a state with a ton of military retirees....scary.

A CPA may cost more, but may save you a ton.
 
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