This is the last year for which you may file a joint return with that spouse. If you're married, you always have the option to file your taxes separately.
If one of you won't agree to file a joint return, you'll have to file separately, unless you qualify for head of household status. When you file a separate return, you report only your own income, exemptions, credits, and deductions on your individual return. If you live in a community property state, the income you and your spouse earn is split evenly between you, as are your expenses unless they are paid by one spouse with his or her separate non-community funds—for example, money you earned or inherited before marriage.
There are several disadvantages to filing separately that you need to be aware of, however, because these can easily outweigh any potential benefits:. As a result of the Tax Cuts and Jobs Act, the tax rates in effect during through for married taxpayers filing separate returns are exactly half those for marrieds who file joint returns. Nevertheless, most married people save on taxes by filing jointly, particularly where one spouse earns most or all of the income. This is because filing jointly shifts the high earner's income into a lower tax bracket.
If spouses earn about the same income, there should be little or no difference in their tax rates whether they file jointly or separately. The only way to know for sure if you'll pay more or less taxes by filing separately or jointly is to figure your taxes both ways. This isn't hard to do if you use tax preparation software. There is one potential huge drawback to filing jointly: As a general rule, when a married couple files a joint return each spouse is jointly and individually liable for the entire tax owed on the return.
This means that either spouse can be required to pay the tax due, plus any interest, penalties, and fines. A spouse can claim "innocent spouse relief" and avoid personally paying the other spouse's taxes if he or she can show the IRS that: 1 the understatement of tax was due to the other spouse, and 2 the spouse did not know, or have reason to know, that there was an understatement of tax when he or she signed the joint return.
However, both propositions can be hard to prove. Find out how to choose the right option. This link is to make the transition more convenient for you. You should know that we do not endorse or guarantee any products or services you may view on other sites. Tax information center : Filing : Personal tax planning. Claiming an Education Credit Not sure if your dependent can claim an education credit? Dependent Relationship Options Confused by dependent relationship options?
When you file jointly you report a single taxable income that combines your earnings with your spouse's. Taxes are calculated using a different set of tax brackets than when you file separately. The primary advantage of filing jointly is that each tax bracket covers a higher range of taxable income than filing separately.
The primary drawback to filing jointly is that you and your spouse are separately responsible for all taxes - not just the tax related to your own earnings. Under very limited circumstances the IRS can grant various types of relief that either eliminates the joint liability or reduces the amount of tax you are responsible for. Remember, with TurboTax , we'll ask you simple questions about your life and help you fill out all the right tax forms. Whether you have a simple or complex tax situation, we've got you covered.
Feel confident doing your own taxes. Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest. For Simple Tax Returns Only. 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. There are many factors involved in determining whether it is better for married couples to file separately or jointly.
When a couple is unsure of which filing status to choose, it makes sense to compute the tax return both ways to determine which will give the biggest refund or lowest tax bill. In general, couples with no dependents or education expenses can benefit from filing separately if there's a big disparity in their respective incomes, and the lower-paid spouse is eligible for substantial itemizable deductions.
Generally, other instances when filing separately is appropriate are related to divorce, separation, or relief from liability for tax fraud or evasion. If you are unsure whether the married-filing-separately strategy is appropriate for you, consult your tax advisor. You never know whether there are any tax deductions you may be missing.
Internal Revenue Service. Roth IRA.
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