If you are trying to figure out your filing requirements then you will first need to determine your filing status. This will usually depend on if you are married or not.

Income Tax Filing For Married Couples

According to the IRS you are only considered married if it is a legal union between a man and a woman. The federal government does not recognize same sex marriages although some states will.

You are considered married if you have a legal marriage and reside together, you have a common law marriage recognized in your state, and if you are married but living separately and not legally divorced.

Married Filing Jointly

This is the most common way married couples usually choose to file thier tax return. If you both had income at about the same levels then you will see the most benefits from filing jointly. More credits and deductions will be available to you as a couple. The only downfall to this is that both spouses are equally responsible for any errors on your return.

Married Filing Separately

If you decide you would like to file your own return separate from your spouse then you may opt to file married but separately. This will require that each of you report all income, deductions, exemptions, and credit on your return. You will usually end up paying a higher tax rate and miss out on some great credits such as the earned income credit and child or dependent care credit.

Married Filing Separately Income Tax

If your spouse did not have income and you file married separately, then you may be able to use your spouse as an exemption so that may be the best option for your situation.

Our new president elect is hoping to put a new stimulus package together shortly after he takes office. His team is already working on a new economic plan. There are hoping to send out another round of stimulus checks to Americans as well as many tax breaks, and many other changes that will help those on unemployment. It will also provide some assistance to those looking to cash in on some of their retirement savings.

Stimulus Checks

Barack Obama has proposed a new tax credit. This new credit could allow for up to $1,000.00 per family to help ease income taxes. This will kind of work like a stimulus check but will need to be facilitated through employers. The employer will be required to not charge income tax for the first $8,100.00 of an employeeʼs wages.

Retirement Accounts

Another section of the economic plan would include a break for individuals looking to cash out some of their retirement savings early. Obama is hoping to allow those having financial troubles be allowed to access some of their retirement savings without penalty. The plan would allow for up to a $10,000.00 withdraw without penalty at any time during 2009. These withdrawals would still be subject to state and federal taxes.

Income Tax

We could see a large tax rate decrease for the middle class. This would be able to happen with the proposed tax increase for those who earn more than$250,000.00 annually. The new tax rate for those with high income could be as much 36%-39%.

TurboTax Online has the answers to all of your stimulus payment questions.