2007-01-04 01:34:20 · 5 answers · asked by Jack Tripper 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
The Cons of filing separately is that you disqualify yourself to receive any Earned Income Credit for otherwise qualifying dependents. 2. Your standard deduction is lower. 3. If your spouse itemizes their deductions on their return, you must on yours as well. 4. Usually, only one spouse gets to file electronically and that's whoever files their return first. (IRS system rejects the other because of duplicate social security numbers) Pros: If you know your spouse is hiding income or defrauding the government, filing separately keeps you from being held liable for any taxes or penalties or jail time.
If you are split from a spouse and the divorce isn't final keeps you from having to still file a return with him/her.
Filing Married filing joint, middle/higher incomes get punished (marriage penalty) for getting married.
2007-01-04 02:07:10 · answer #1 · answered by Fool in the Rain 6 · 0⤊ 0⤋
Married filing seperately puts a brick wall between the persons involved if one has back tax problems. You can somewhat achieve protection if you file jointly and use a form 8379; injured spouse allocation. Married filing seperately also will cost you some tax credits; EIC for one. Usually it is the protection against problems thing that makes it a pro.
2007-01-04 10:06:35 · answer #2 · answered by acmeraven 7 · 0⤊ 0⤋
Unless the lower paid spouse has a lot of deductions that would be lost under the phase out rules you are always better off filing married filing joint from a total tax point of view.
An example of deductions subject to the phase out rules would be significant medical expenses of the lower paid spouse.
The only other reason to file married filing separate would be if one spouse thinks the other is committing tax fraud an they don't want to be a party to committing fraud against the Treasury.
2007-01-04 09:43:07 · answer #3 · answered by waggy_33 6 · 0⤊ 0⤋
married filing separate WILL get you in trouble with KGB(irs) and will cost both of you money.
file married joint keeps your money where it belongs - in your pockets.
married file separate has too many exclusionary exceptions to doing in correctly that most CPAs can't do it correctly never mind the IRS does not understand or interpret the rules the same way every time.
not all MFJ decuctions apply to MFS and those that do have higher filing standards.
MFS = good deal for IRS , you just get bent.
2007-01-04 09:47:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The difference depends on difference between allowance for single and married, as well as on the income of husband and wife!
2007-01-04 09:38:39 · answer #5 · answered by Sami V 7 · 0⤊ 1⤋