Filing Status

Question 1

Single filing status

Answer 1

• You were never married
• You were legally separated at the end of the tax year
  
  • if your divorce was NOT FINAL, then you are considered married

Question 2

Married, filing jointy

Answer 2

• You were married at the end of the tax year
  
  • EVen if you DID NOT LIVE with your spouse at the end of the year
• Your spouse DIED in the tax year and you DID NOT REMARRY in that tax year
• You were married at the end of the tax year, but your spouse died in the next year before you filed your tax return

Question 3

Joint and Several Tax Liability

• What filing status could this occur under?
• What is this?

Answer 3

• Married, filing jointly
• These could be a concern when filing jointly with your pouse because both you and your spouse are generally responsible for the tax AND interest or penalties due on a return
• Potential concerns:
  
  • If one spouse doesn’t report correct taxes, both spouses may be responsible for addiitonal taxes assessed by the IRS
• May want to file SEPARATE RETURNS when:
  
  • You believe your pouse isn’t reporting all of his/her income OR
  • You don’t want to be responsible for any taxes due if your spouse doesn’t have enough tax withheld or doesn’t pay enough esimated tax

Question 4

When may you want to file taxes separately if you are eligible for married, filing jointly?

Answer 4

• May want to file SEPARATE RETURNS when:
  
  • You believe your pouse isn’t reporting all of his/her income OR
  • You don’t want to be responsible for any taxes due if your spouse doesn’t have enough tax withheld or doesn’t pay enough esimated tax

Question 5

Innocent Spousal Relief

Question 6

Can a nonresident alien file a joint return if they are married?

Answer 6

• Yes, if:
  
  • One spouse is a US citizen, you can file jointly if you ELECT TO BE TREATED AS A RESIDENT ALIEN
• No, if:
  
  • You or your spouse elect to be treated as NONRESIDENT ALIEN

Question 7

Married, Filing Separately

Answer 7

• You only report your own income, deductions, and credits
• You are responsible for only the tax on your own income
• Potential for paying more tax if you do this rather than married, filing jointly

Question 8

Potential disadvantages of married, filing separately

Answer 8

• Married, filing jointly usually gives you better tax brackets
• You CAN NOT take the following deductions/credits:
  
  • Student loan interest deduction
  • Tuition and fees deduction
  • Education credits
  • Earned income credit
• You also CAN NOT take the standard deduction IF:
  
  • Your spouse itemizes deductions

Question 9

Head of Household

Answer 9

• If you are unmarried and provide a home for certain other persons
• Unmarried in this sense means:
  
  • You were legally separated at end of tax year
  • You are married BUT lived apart from your spouse for the LAST 6 MONTHS of the tax year AND you meet the other rules under MARRIED PERSONS WHO LIVE APART
  • You are married to a NONRESIDENT ALIEN at ANY TIME during the year and the election to treat the alient spouse as a RESIDENT IS NOT MADE

Question 10

Head of Household - Tests

Answer 10

Must meet ONE of the tests:

1. Test 1
   
   • You paid OVER HALF the cost of keeping up a home that was the main home for ALL OF the tax year of your parent whom you can claim as a dependent
     
     • Your parent DID NOT HAVE TO LIVE WITH YOU
2. Test 2
   
   • You paid OVER HALF of the cost of keeping up a home in which you LIVED AND in which one of the following also lived for MORE THAN HALF of the year
     
     • Any person whom you can claim as a DEPENDENT.
       
       • But DON’T INCLUDE:
         
         • Your child whom you claim as your dependent because of the rule for CHILDREN OF DIVORCED or SEPARATED PARENTS
         • Any person who is your dependent only because he/she lived with you for all of the tax year, OR
         • Any person who claimed as a dependent under a multiple support agreement
     • Your unmarried qualifying child who IS NOT your dependent
     • Your unmarried qualifying child who IS NOT your dependent only because you can be claimed as a dependent on someone else’s current tax year return
     • Your qualifying child who, even though you are the custodial parent, is NOT your depedent because of the rule of DIVORCED OR SEPARATED PARENTS

Question 11

Head of household - exception to time lived with you

Answer 11

• Temporary absences by you or the other person for special circumstances, such as school, vacation, business, medical care, military serice, or detention in a juvenille facility, COUNT AS TIME LIVED IN THE HOME.

Question 12

What are the costs involved in “keeping up a home?”

Question 13

Head of household - married persons who live apart

Answer 13

• You are considered UNMARRIED IF ALL OF THE FOLLOWING APPLY:
  
  • You lived apart from your spouse for the last 6 months of the tax year
    
    • Remember that temporary absences for special circumstances count as TIME LIVED IN THE HOME
  • You file a separete return from your spouse
  • You paid over half the cost of keeping up your home for the tax year
  • Your home was the main home of your child, stepchild, or foster child for more than half of the tax year
  • You can claim this child as your dependent or could claim the child except that the child’s other parent can claim him/her under the rule of Children of Divorced or Separated Parents

Question 14

Qualifying Widow(er)

Answer 14

• Can use JOINT RETURN TAX RATES IF ALL OF THE FOLLOWING APPLY:
  
  • Your spouse died in TWO years previous OR previous tax year and you DID NOT REMARRY before the end of the current tax year
  • You have a child or stepchild (not a foster child) whom you can claim as a dependent or could claim as a dependent except that:
    
    • The child had gross income of 4300 or more
    • The child filed a joint return OR
    • You could be claimed as a dependent on someone else’s return
  • This child lived in your home for ALL of the current tax year
  • You paid over HALF the cost of keeping up the home
  • You could have filed a joint return with your spouse the year he/she died, even if you didn’t actually do so

Question 15

If your spouse died in the CURRENT TAX YEAR, what could you file as?

Answer 15

• Only as married, filing jointly NOT qualifying widow(er)