Who qualifies as "single" for tax or retirement purposes when spouses do not live together?

By Denise Appleby AAA
A:

For the purposes of taking a deduction for an IRA contribution, the IRS provides special allowances for individuals who are married, file separate returns and lived apart for the entire year by treating these individuals as "single" filers.

1. If you and your spouse did not live together at any time during the year, then you are considered "single" for tax filing purposes and should use the guidelines for a single taxpayer.
2. If you and your spouse did not live together at any time during the year, you are each allowed a full deduction.

A person who was married during the tax year, regardless of whether he or she lived with the spouse, has a filing status of married filing jointly or married filing separately unless he or she qualifies for the exception that requires a separate household maintained for a dependent/child for a certain number of months of the year. The IRS provides that certain married individuals who lived apart from their spouses for the last six months of the year and are eligible to claim someone as a dependent may use the head of household filing status for tax filing purposes.

This question was answered by Denise Appleby
(Contact Denise)

RELATED FAQS

  1. Why were 401(k) plans created?

    Discover why consultant Ted Benna created 401(k) plans after noticing the Revenue Act of 1978 could be used to set up simple, ...
  2. What is the penalty for taking money out of my 401(k) before I'm 59 years old?

    Learn why withdrawing from a 401(k) plan before age 59 carries an extra 10 percent tax penalty. Only a few circumstances ...
  3. Can I still set up an SEP if one of my employees refuses to participate?

    You can establish the SEP IRA, even if the employee refuses to participant. However, you would need to establish an IRA for ...
  4. I want to close my IRA account. What percentage will I lose to tax?

    You can move the amount by means of a trustee-to-trustee transfer to another IRA, or roll over the amount to your 401(k). ...
RELATED TERMS
  1. Senior Move Manager

    Senior move managers (SMMs) help seniors downsize and relocate ...
  2. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  3. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...
  4. Stretch IRA

    An estate planning concept that is applied to extend the financial ...
  5. IRA Transfer

    The transfer of funds from an Individual Retirement Account (IRA) ...
  6. IRA Asset Will

    A document that specifies how the assets in an individual retirement ...

You May Also Like

Related Articles
  1. Insurance

    Who (Besides Retirees) Can Get Medicare?

  2. Retirement

    Retiring In Europe? Check Out These ...

  3. Retirement

    Time To Hire A Senior Move Manager?

  4. Retirement

    A New Solution To Help Seniors Relocate

  5. Retirement

    Retiring In Spain: 5 Best Cities For ...

Trading Center