Have you taken this year in an alley by saying "I Do"?
Have you thought about how you will file your income taxes while walking down the aisle? Probably not (in fact, I hope not).
But now you may be wondering what the advantages and disadvantages are the production options, the IRS expects to be legally married.
your tax filing options on income
your legal marital status on the last day of the tax year dictates your marital status for the entire year for the purposes of income tax.
for example, if you are legally married December 31, 2014, you are considered married for the entire 2014 tax year
considered married taxpayers the last day of the tax year have three production options :.
- Married filing jointly
- Married filing separate
- Joint Married filing the return of federal and married filing separate on the return of the State
married filing jointly - Benefits
in most cases, a married filing jointly return to a lower tax liability in relation to the filing separate return Bride
This is because married filing. together condition may include various credits and deductions, listed below, which are not available to a taxpayer using the married filing separate status.
- earned income credit
- education credits as the American Opportunity Credit or Lifetime Learning Credit
- deductions Education as interest on student loans and tuition and fees
- aid credit to the adoption
- child credit and dependent care costs
- credit for the elderly or people with disabilities
married filing jointly - Disadvantages
married Filing jointly means each spouse is responsible for tax obligations, including taxes, interest and penalties
However, there are three. types of relief from joint liability available:
- Joint Innocent
- The separation of responsibility
- Equitable Relief
Married filing separate - Benefits
If you choose to file separate filing as Married when filing your original return, you can modify to change later Married filing joint filing status.
conversely, if you choose to produce the original declaration as a married spouse deposit, you can not change change later, Married filing separate filing status after the due date production, which is usually April 15.
Married filing separate -. Disadvantages
The Married filing separate filing status may limit certain credits or deductions on the return
- tax credit child
- retirement savings credit contribution
- capital loss deductions
If your spouse lists the deductions, you can not claim the standard deduction .
If you can claim the standard deduction, your standard deduction is half the amount allowed on a joint statement.
Possible state Implications
filing requirements for each state can vary; However, you can enter your information in the TaxAct program to see which filing status would benefit you the most.
You may need to check with your first state since many states require that you use the same filing status that was used on the federal return
Source of the image:. kwreinsch
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