Can you file taxes separately when married

In some instances, love doesn't have a place in your tax return. There are a number of reasons why the married-filing-separately status is seldom chosen by couples. The biggest reason is the forfeiture of a number of major tax credits and deductions that are available to those who file jointly, such as:.

Another limitation when it comes to married filing separately: Both spouses must choose the same method of recording deductions, even if one of them would be better off doing so under the opposite method. For example, if one spouse decides to itemize deductions , the other spouse must do so as well, even if their itemized deductions are less than the standard deduction.

This means that filing separately is a good idea from a tax-savings standpoint only when one spouse's deductions are large enough to make up for the second spouse's lost deduction amount. There are a number of situations, however, in which it is best for a couple to file separately:.

Legal separations were the original rationale for the creation of the "filing separately" status. For a variety of reasons, divorcing or separated couples may not be willing to file their taxes jointly. Filing separately also may be appropriate if one spouse suspects the other of tax evasion. In that case, the innocent spouse should file separately to avoid potential tax liability due to the behavior of the other spouse.

This status can also be elected by one spouse if the other refuses to file a tax return at all. Protecting yourself from a negative outcome isn't the only reason to file separately.

Today, even the most happily married couple may come out ahead by choosing this route. The primary instance is with childless couples, in which one spouse has a considerably higher income and the other spouse has substantial potential itemized deductions. The IRS rule for deducting unreimbursed medical expenses dictates that only expenses in excess of 7. Even if, in a normal year, it would make more sense for this couple to file jointly, in the year of the big medical expense, filing separately might make more sense.

The source of funds is highly important in this type of situation. According to the IRS, "If you and your spouse live in a noncommunity property state and file separate returns, each of you can include only the medical expenses each actually paid. Any medical expenses paid out of a joint checking account in which you and your spouse have the same interest are considered to have been paid equally by each of you, unless you can show otherwise.

Community property and income are considered to be jointly owned by both spouses. Each spouse must report half the total community property income on their separate tax return, even if one never worked a day all year. Deductions are also split in half, with each spouse reporting half the deduction on their separate return. These rules apply even if just one spouse lives in a community property state.

There isn't a penalty for filing Married Filing Separately. However, there are tax breaks that you're no longer eligible for when not filing jointly. Most tax professionals consider this status as being the least advantageous for those involved. Taxpayer Advocate Service. Federal Student Aid.

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Part of. Filing Your Return. For example, numbers make the Married Filing Separately status not a good choice, tax-wise, for students. In any case, it is a good idea to estimate your tax refund or liability using both Married filing statuses so you know which one would be most beneficial to you.

You will need to enter the following information for your spouse on the Personal Information screen of your eFile. If you do not have the spouse's social security number you can prepare the return on eFile. Include a cover letter with your tax return and explain why the SSN, date of birth for the spouse are missing. Here are the mailing addresses for IRS returns. It is easy to file as Married Filing Separately on eFile. Choosing your filing status is one of the first things you do when you start preparing your tax return online.

Once you select your filing status eFile. After the IRS accepts your Married Filing Separately tax return, if you need, you still can amend your return to a Married Filing Joint filing status return for up to 3 years after the original tax deadline this does not include extensions. Find out how to file an amended return. Get Your Tax Refund Date. What is DocuClix? Security About eFile. Examples of how the Economic Stimulus Act of may affect taxpayers who are married but file separately, with or without children who qualify for the child tax credit payment:.

Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Married couple, two qualifying children.