RISE OF THE UNICORN BRETHREN

[MagnaofIllusion]

You two have no idea how good you have it.

Once they get past 2 you really kiss your time goodbye.

My 6 year old is a walking blonde hurricane of Daddy free-time destruction.

[MagnaofIllusion]

We file with H&R Block...

So yeah, all available credits added in.

Hmmm ... I am greatly disheartened to see that Taxes were being discussed and no-one informed me.

If the above situation is true (and I'm assuming nothing given you used H&R Block) and you had to pay out lots of money with your taxes I can think of only two reasons why -

1. You are criminally underwithheld on your W-2 Pay.
2. You have your own business or other investments that generate income while not withholding and you didn't pay estimated taxes.

If you don't think either of these are true I'd suggest finding a small CPA firm and having them give your return a second look.

I'll also comment that the tax disadvantage from married couples has more or less been legislated away. The real penalties lie with Married Couples who choose to file seperately.

/CPA out ...

[MagnaofIllusion]

Wait wait wait.

If I file separately from my wife, I get MORE money back?!?!

(but then the IRS will crack down on me?)

Explain please.

No, generally if you file seperately from your wife you will pay more net tax (on a Federal basis). The general reason for this is that a large number of deductions / credits / benefits that are dissallowed from Mafia Filing Seperate status. This may be offset with State advantages. For example, Ohio has a strangely graduated rate structure that generally advantages Married Taxpayers who file seperate with similar income levels.

So it generally only makes sense to file seperately if the state advantage outweighs the Federal disadvantage.