Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Oct 29, 2019 6:29:36 PM

Concerning the Family Tax Cut, how can I reduce the amount of income splitting with my spouse? It's not in my favor to split the maximum amount!

My non-refundable tax credits exceed my Federal tax after income splitting, so they're basically 'going to waste'.  Thus I'm loosing several thousand $$/year.  I need to split a lot less than half of my income off to my spouse, so I can take full advantage of my non-refundable tax credits.

0 1 1172
1 Best answer
New Member
Oct 29, 2019 6:29:38 PM

The family tax cut does not "split income"  It compares the income of both persons and calculates an amount to equalize the incomes, thus dropping you into a lower tax bracket.  In this way you pay less tax.  The calculation is what it is.  You get whatever reduction in tax that up to $2,000 max.  You are losing nothing.  It will not give you a refund, and it is for no other purpose than to reduce the amount of tax paid or payable.  If you already pay no taxes, you get no benefit.

1 Replies
New Member
Oct 29, 2019 6:29:38 PM

The family tax cut does not "split income"  It compares the income of both persons and calculates an amount to equalize the incomes, thus dropping you into a lower tax bracket.  In this way you pay less tax.  The calculation is what it is.  You get whatever reduction in tax that up to $2,000 max.  You are losing nothing.  It will not give you a refund, and it is for no other purpose than to reduce the amount of tax paid or payable.  If you already pay no taxes, you get no benefit.