Tax Advice for Son (1 Viewer)

[coopersdad]

Son and future daughter-in-law had a baby in February 2023 and are getting married in this May (which I know has no effect on 2023 taxes)

Both make about the same salary although DIL is "probably" a office contractor for her dad's construction business. I'm not really sure yet and won't be until I see her tax information from her dad and how he claims her.

Obviously one of them will be able to claim HoH and claim the baby.

Will it matter who claims the baby / claims the taxes paid on the house, or do I need to have turbo tax work though the different combinations to see what it comes up with?

In my mind, since they make about the same, the net due is going to be about the same, but I'm thinking that whoever claims the boy, should also claim the house.

Any thoughts are appreciated.

 

[Dezbelief]

If they're shacked up they can also file together. Usually works out worse unless there's excess deductions on one of their returns.

 

[eoMMan]

When you say “claim the taxes on the house”, you are referring to an itemized deduction. In order to itemize, your total itemized deductions need to be more than the standard deduction, which was increased by a lot a few years ago. A lot of people that itemized before no longer do because the standard deduction is more than all there deductions (RE taxes, mortgage interest, etc.). Regardless, put everything in the software and see what happens.
And regarding the kid, yes, it would probably be more beneficial for him to claim the baby but that is something you can also play around with and see how both of there filings look with the baby.