Ask a CPA

"Community property" laws mean that in a legal marriage each spouse legally owns half of the income and property of each other, even if legal title is held by only one spouse. Your tax return preparation is affected by whether you live in a "community property" state. We recommend you contact a CPA in your area for additional information as to how these rules affect you directly.

The capital loss carryover from your previous year's married filing joint return may only be claimed on the married filing separate return of the spouse who originally incurred the loss.
You cannot use 50% of the loss if it originated from your spouse's sale of a asset.

There is a phase-out of itemized deductions for taxpayers with AGI above $259,400 (individual filers), $311,300 (MFJ), $285,350 (H of H).

When both spouses are income earners, the tax they pay when they file a joint return is usually greater than the tax they would pay separately if they were still single. This is referred to as the marriage penalty. When you are married you cannot choose to file as single. You must file either jointly with your spouse, or file "married, filing separately". Filing separately from your spouse is usually even more costly.

No. If you are married on the last day of the year, you must file either married filing jointly or married filing separately. You are not allowed to file as single.

No. If you are married (as of the last day of the year),you may elect to file using the status of married Jointly or married Separately. Generally, separate tax returns may be more beneficial and save both people money, especially when both people have earnings and taxable income, and high medical or miscellaneous itemized deductions. Filing separately may allow more of the phased-out itemized deductions which are based on the taxpayer(s) Adjusted Gross Income.

If you did not live with your spouse for the last 6 months of the current tax year and you maintained a household for your dependent child, then you may file as a "Head of Household" filing status.
Head of household filing status is better than married filing separately or single. You should speak to your local CPA prior to filing your tax return.

If you are divorced during the tax year either by a final decree of divorce or separate maintenance agreement, you are treated as unmarried for the whole year.
If you remarry before the end of the year you will be treated as filing a joint return or you may elect to file as married filing a separate return.
An unmarried person with a child may use the filing status of "head of household." An unmarried person without a child will be treated as single. Speak to your local CPA before you file your tax return.

Yes. The American Opportunity or Lifetime Learning credits are not available for married filing separate returns. For MFS you must have lived apart from your spouse for the last 6 months of the year to take advantage of the dependent care, earned income, elderly credits and the $25,000 rental loss allowance. Also Social Security will be 85% taxable. Speak to your local CPA abount the tax strategy of using married filing jointly or married filg separately.

Some spouses have had problems with the IRS in the past and still owe the IRS taxes. When you file a joint return, you and your spouse are both equally responsible for the taxes owed on that return. Any refund you might have been entitled to could be used to pay your spouse's existing liability with the IRS or the state. Lastly, some people do not want their spouse to be aware of all of their financial involvement.