Can someone please explain it to me

This is tax related.....and it doesn't make sense to me. My husband works in NYC and has to pay the 1127 City Waiver....understandable. However, when we file our taxes my income (I work in Suffolk county and we live in Suffolk county) gets "taxed" (of course its not a tax because we have no representation). There is something that states we can file separately for purposes of the waiver even if we file jointly for federal and state. If we file separately we pay more than jointly. We owe the city $1300....

Here's my question why does my income have to be taken into consideration since I don't live or work there?

Anyone with tax knowledge that can make me understand this I would greatly appreciate it.

Message edited 2/22/2008 1:17:20 PM.

Re: Can somrone please explain it to me

since you are filing "jointly" - that is exactly what it means. all income and deductions are combined.

in your circumstances, it might be better for you guys to file all returns "married filing seperately". your accountant should run it both ways to see which is more beneficial.

Re: Can someone please explain it to me

He did and then we would have to pay $1400 for the 1127

Re: Can someone please explain it to me

I don't know too much about the 1127 waiver. Is it based on income? Also, if he owes more filing separately, then there is probably some sort of exemption component to the waiver - so even though it includes your income, it sounds like there's an offset for it.

Message edited 2/22/2008 1:25:59 PM.