[hollylovesbrandon]

Just wanted to get a quick rough estimate.

I am a stay at home mom to 2 babies. One of which was born in 2015.

My husband makes about 41,000 before taxes each year.

We took out a loan from our 401k but have been paying it back monthly so I don't think we have to pay a penalty.

We file married filing jointly. He withholds as married but withhold at single rate and claims 0 dependants.

And we have a mortgage payment of 615 a month and it is escrowed.

Anyone give me an idea of our return? Do we qualify for the EIC?

Thanks in advance.

[AtlantaTaxExpert]

You do NOT qualify for the Earned Income Credit; however, you DO qualify for $2,000 worth of the Child Tax Credit.

You WILL get a refund; exactly HOW MUCH I cannot tell you until I see your husband's W-2.

If you want my professional help, please email me at the email address listed in my profile.

[ScottGem]

A loan from a 401(k) has no effect on your tax liability. It is not a withdrawal and the interest that you are paying (paying to yourself) is tax deferred income.

Your husbands final paycheck should have the YTD witholdings so you can use that to get an idea. You, in effect have 3 dependents. Your 2 children and your house. So withholding at the single rate should get you a nice refund.

There are online services where you can get a tax estimate for free.


I would reconsider his withholding for 2016. When you are overwithheld you are, essentially, making Uncle Sam an interest free loan of your money. You would be better off increasing the exemption he claims and putting the difference into a Savings account or other investment. This way your income would be working for you instead of Uncle Sam. While its nice to get a windfall in the spring of a tax return, its better to put that money to work for you.

[AtlantaTaxExpert]

All that Scott says is valid, especially the point about over-withholding being an interest-free loan to the U.S. government.