Cue this year. This is obviously the first year I have done taxes while married. I knew what to do because I had a W2, but with Ethan doing summer sales, he was given a 1099-misc (he was considered a contract worker). Essentially that means that the company pays no taxes and takes no taxes out of your check. I knew this could ding us pretty bad, but we pushed forward.
We were working on the income part and how much we paid in taxes and it said we were going to get a pretty penny back. Both of us were beyond excited, that is, until we had to put in our scholarship/grant information. I put in how much I received in both scholarships and grants for my last year and BAM, there went our return. I'm assuming that because the money that I received was well above what was billed to me from the school, the extra then became income. Talk about the most depressing thing I've ever seen on my taxes. This whole time I had given Ethan a hard time for most likely making us pay, when it was me who caused the havoc to our taxes.
We still haven't quite finished our state taxes, so I'm hoping maybe that'll help us out a bit. I guess getting paid to go to school isn't always a bed of roses (did I even say that right?)! Although, I'd definitely take the money again if I had the chance.
But you are still the one who had the check which paid all the federal taxes. You both received income where no taxes were withheld.
ReplyDeleteYou don't want money back. It's an interest free loan to uncle sam.