YOUR TAX FILING STATUS (IRS PUBLICATION 504)
Your file status is used to determine if you must file a tax reelect, the standard discount, and the come of tax you are required to pay. The filing condition besides impacts claims to other deductions and credits. When determining a filing status, you must first look at your marital status on the final day of your tax year. You are considered “ unmarried ” for the unharmed class if you have obtained a disassociate rule by the last day of your tax year or :
- You file a discriminate return ,
- You paid more than half of the cost of keeping up your home for the tax year,
- Yours spouse did not live in the home during the last 6 months of the tax class ,
- Your family was the main home for your child, stepchild, or foster child for at least 6 months of the tax class, and
- You must be able to claim the child as a dependent .
The predate does not include living in classify homes due to military service, checkup treatment, attendance at college or university, and early similar irregular circumstances. conversely, you are considered “ married ” for the whole year evening if you are separated, but you have not obtained a disassociate decree by the last day of your tax year .
MARRIED FILING JOINTLY
A married couple has the option of filing a joint return. When you file a joint return, you and your spouse ’ randomness income is included in the retort. You and your spouse sign the return and you are both liable ( jointly and individually ) for any tax, pastime or penalties. This means that after divorce, you and your spouse continue to be liable for tax, matter to or penalties due on a joint return for a tax class ending before your divorce. After the ascribable date of your tax return, you and your spouse can not file branch returns if you previously filed a joint tax return .
MARRIED FILING SEPARATELY
A marry couple besides has the option of filing freestanding tax returns. Each spouse will report his or her income and deductions on a discriminate tax return. In this case, each spouse is entirely liable for any tax, interest or penalties on his or her separate tax render. Filing break tax returns is normally not advised, since you will frequently pay a compound higher tax. The IRS permits married couples who filed individually to change their filing status and refile with a joint come back sol hanker as sealed conditions are met .
If you are unmarried or considered unmarried, you must file an individual hark back, unless you qualify angstrom filing as principal of family or qualifying widower .
SINGLE – HEAD OF HOUSEHOLD
head of family is a file condition for unmarried taxpayers who keep up a home for a “ Qualifying Person ”. Qualifying Persons are typically relatives who must meet special requirements set forth by the IRS. There are unique advantages for filing as head of family :
- You can claim the standard deduction even when your spouse files individually and itemize his or her deductions .
- Your standard deduction is higher than when you file as single or married file individually .
- You may be able to claim certain credits ( e.g. dependent care credit rating ) .
- Income limits that reduce the child tax credit or retirement savings are higher than the income limits if you claim a file condition of married file individually .
In order to file as fountainhead of family you must be :
- Unmarried or “ considered unmarried ” on the last day of the year ,
- You paid more than half the cost of keeping up a home for the year, and
- A “ qualifying person ” lived with you in the home for more than half the year, unless he or she is your dependent parent, in which casing, the parent does not have to live with you.
After a separation, it can surely feel like you are one and no retentive married, specially when you and your spouse are living apart ( and possibly with new partners ) and no longer sharing expenses. But in the eyes of the federal government, you are still married until the day a state of matter court evaluator makes your disassociate final. frankincense, you normally can not file as a single taxpayer while your divorce is pending. Your only options are “ married file jointly ” and “ married filing individually ” .
The intricacies of the federal tax code are far beyond the scope of this article, but, for many couples, there are normally disadvantages when filing as “ married filing individually ” tax returns v. a “ married filing jointly ” tax return ( although there are many cases in which this is not true vitamin a well ). To give an exercise, one spouse might file a “ married filing individually ” return and get a $ 1,000 tax refund, while the other spouse would file a “ married filing individually ” return and end up paying $ 15,000 with the return. together this is an extra $ 14,000 payment that would have to be made with the taxes. That lapp match, however, had they filed together in a “ married filing jointly ” return might owe an extra $ 9,000 in taxes. That ’ sulfur $ 5,000 less than they would have had to pay jointly with “ married filing individually ” returns. These are good conjectural numbers, but the point is that you and your separate spouse – even if you can not agree on anything else – may be able to benefit one another by reaching an agreement, either in conjunction with a colony agreement to work together on your taxes .
Experienced disassociate attorneys are always looking at ways to help their clients save money and preserve their assets during and after disassociate. Your taxes should never be an reconsideration during your divorce. Never underestimate the importance of having qualified and experienced professionals ( accountants and attorneys ) assist you with your disassociate. The Martin Law firm, P.C. office is in Blue Bell, Pennsylvania. Contact us today for a unblock disassociate sheath evaluation at (215) 646-3980.