Separate Return

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DEFINITION of 'Separate Return'

A separate Form 1040, or a variant thereof, filed by a married taxpayer who is not filing jointly. A separate return is usually filed either by a married couple who are divorcing or by a married couple where one spouse has much higher income and deductions than the other.

BREAKING DOWN 'Separate Return'

Taxpayers who file separately forfeit a number of tax credits, such as the earned income credit and the dependent care credit. They are also ineligible to make Roth IRA contributions or convert their Traditional IRAs to Roth IRAs.

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RELATED FAQS
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    IRS rules prevent you from maintaining joint Roth IRA accounts. However, you may accomplish your goal of contributing larger ... Read Full Answer >>
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    Though some states protect IRA savings from garnishment of any kind, most states lift this exemption in cases where the account ... Read Full Answer >>
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    While there is no legal reason why you cannot withdraw funds from your IRA to start a traditional savings account, it is ... Read Full Answer >>
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