Married Filing Separately
 |
Definition of 'Married Filing Separately'
A filing status for married couples who choose to record their respective incomes, exemptions and deductions on separate tax returns. In most cases, married filing jointly offers the most tax savings, especially when the spouses have different income levels. However, there is a potential tax advantage to filing separately when one spouse has significant medical expenses or miscellaneous itemized deductions.
|
 |
Investopedia explains 'Married Filing Separately'
According to the IRS, if you and your spouse file separate returns and one of you itemizes deductions, the other spouse will have a standard deduction of zero. Therefore, the other spouse should also itemize deductions. Some credits cannot be used at all if you file separately; these include the child and dependent care credit, hope and lifetime learning credits, and adoption expense credit. If you live in community property states including Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin, you may need to see a tax professional because the rules about separate incomes can be tricky.
|
-
Just because you are in love doesn't mean that a joint return is best for both of you.
Read More »
-
Find out what information you need to pull together before filling out your return.
Read More »
-
These sneaky financial moves could erode your finances - and your relationship.
Read More »
-
-
Marriage can be like doubling an income, as long as you avoid doubling these expenses.
Read More »
-
Learn how to resolve the financial and emotional issues surrounding a scarce commodity.
Read More »
-
Getting organized well before the deadline will curb your frustration and your tax liability.
Read More »
-
Keeping on top of these amendments can help you avoid penalties and take advantage of benefits.
Read More »
-
Read More »
-
For many couples, it pays to file for taxes together. But what are some of the obstacles you should watch out for?
Read More »
-
Read More »
|
|