Oh, why is it that the tax code is designed to hurt us that are separated from our spouses?
Yes, I assembled my tax documents (for self-employed people it takes some time, it's not just looking at a W-2). So what did I learn? You cannot claim the Earned Income Credit (EIC), when you are 'Married Filing Separately'. This is a big part of our tax credits b/c we have 4 kids.
So I email W and show her the IRS explanation. I called her after she got my email. And I explain how big of a hit this is going to be. She simply says that she doesn't want to be taken advantage of by having us file jointly.
Ok, I decided against trying to negotiate with her right now. She was going to try and fill-in her taxes on-line, and I want her to see the reality of what the loss of the EIC means to both of us.
W then tells me that she is "on welfare and receiving food stamps", and that she cannot see how she would have to pay any taxes with as little as she made. Sigh... And she turned down a job which wasn't "perfect"?
W also told me her car is broken again, and needs $1,000 of work. She then told a male friend was going to loan her the $1k, until her busy time this summer (assuming her photography work) to get her car fixed now. This part feels kinda good - W is not my responsibility to help her out.
So we are still waiting to see how the tax issue will work out. I got our health insurance application filed today, so at least something is getting completed.
