Hi Tax Expert,

My husband has a non taxable income from the VA. My income bracket is about $23K/yr and we used not pay taxes (claimed exempt) yrs ago because my yrly income was used to be 10K/yr. Since I got employed recently this November 2008, I do not know if we can still declare exempt for the federal taxes. Help... confused.

Thanks,
AZ

What does it mean: "My husband has a non taxable income from the VA?"

MukatA:

In this case, VA means Veteran's Administration, not Virginia.

VA pensions are NOT taxable under current law.

AZ:

If your 23K income is annualized, that means your two month income is about $4,000, which will NOT be taxed in 2008. So, for 2008, you can still claim exempt.

For 2009, however, you will need to claim Married with TWO exemptions to have SOME money withheld from your salary.