Ever wondered why couples file separately when they are married? You may have overlooked some interesting aspects that other people take into consideration in this situation. Selecting your filing status is the most important thing you can do when preparing a return. The IRS filing status has a great deal of significance when it comes to your tax return. You can get a large refund by choosing the right filing status. It is often easy to select the right filing status, particularly if you’re single. It can be difficult to choose the correct filing status if you’re single but also have dependents who qualify.
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Why Separate Filing for Married Couples
Many reasons exist for spouses to prefer a particular filing status. Most couples choose a filing status which results in a lower tax. If you file jointly, you are both responsible for paying the combined income tax. You are equally responsible for the tax, interest and penalties. Separately filing does not mean you will start using the single rates which were in place before marriage. Each married couple should instead use separate filing rates. Separately filing does have some disadvantages. You may be forced to file separately for a variety of reasons or situations.
You Can’t Trust your Spouse
You may suspect your spouse of hiding their income in order to give the wrong information on their tax return. If this is the case, filing separately will be your best option as you won’t have to answer for it.
When your spouse doesn’t pay taxes
You spouse could play “mind games” to evade IRS taxes. This is not recommended. It’s best to do your taxes separately.
How to claim medical debts as a deduction
You may be able deduct a portion of your medical bills if you paid them in the past year. Your income will determine the amount of deduction you can make. The more income you earn, the less deductions from medical expenses you can make. Sometimes, you can’t deduct anything if you earn more.
When should married couples file separate tax returns?
Your spouse and you can choose to file jointly or separately. It is possible to benefit from filing separately, regardless of the fact that you will receive a larger refund and pay less tax if you file jointly. When you prepare a joint filing, both of you will be responsible for the tax liability of one individual. Your partner’s return will not be liable for any taxes or penalties.
If you and your spouse do not agree to file jointly, you will need to file separate returns. If you fall into one of the following categories, then you will likely file a separate married return:
- If you and your spouse owe taxes or child support but have filed a joint return, the IRS can offset your refunds in order to pay for the taxes.
- Your spouse’s earning-based payments for student loans–the payments are based on your individual income, not the combined income.
- If you suspect that your spouse may not be being honest about their tax situation, (especially if they are going through a separation or divorce),
- Your spouse/you have a large medical bill
- If you and your partner both earn high incomes
- You do not want to be held responsible for each other’s taxes. It is for this reason that many married couples file separately. This is important because it minimizes the damage caused by other spouses’ tax mistakes.
Both filing statuses share the same qualifications. If you decide to file separately, then you can’t agree to file jointly. You need to choose the filing status that will benefit you both. There are many tax programs available, including TurboTax.
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