We are not separated, but we would like to file separately because my husband is considered self-employed, but I would get a return if I filed mine separately. Can we do that? Do the tax forms (his and mine) have to be sent in at the same time, or can I send mine in now and his in on Apr 15?
2007-03-01 01:35:26 · 8 answers · asked by princesspeapot 1 in Business & Finance ➔ Taxes ➔ United States
Yes you can. Best to consult w/ an advisor because in some cases married filing separately is not going to bring you the highest return. You can send them in at different times.
2007-03-01 01:43:34 · answer #1 · answered by DuneFL 3 · 1⤊ 0⤋
You can file separately, but income will need to be divided between the two returns in away that is compatible with state law. You did not list what state you are in this will be hard for me to know what rules that you will need to follow.
Your tax return does not need to be filled at the same time as your husbands and you will not be penalized if he is late. You will however be penalized if something he put on his tax return is not compatible with yours. An example will be one person taking a standard deduction and the other takes an itemized deduction. That is not allowed.
For more detail IRS Publication 555. It is only 12 pages long and may help answer your question better.
2007-03-01 10:32:34 · answer #2 · answered by jks_mi 3 · 1⤊ 0⤋
You can always file married filing separately, but please be aware that there are MANY restrictions on you if you use this filing status. You also might be limited in your deductions and credits.
Also, if he is self-employed and didn't make estimated payments, filing a joint return could prevent him from having to pay a penalty.
I highly recommend you review your returns both as married filing joint and married filing separately.
I'm totally making up numbers, but lets say filing jointly you owed $1,000 by filing separately he may owe $2,000 and you might get a refund of $500. Is it worth it?
In all my years of tax preparation (over 10) I have only seen one time where married filing separately resulted in a higher refund than filing jointly and it was only about $40 difference - - which of course was eaten up plus some by the tax prep fees.
2007-03-01 11:06:25 · answer #3 · answered by nova_queen_28 7 · 0⤊ 0⤋
I would not suggest filing separately in a community property state. The reason is that you will be filing two tax returns with substantially the same information while forfeiting credits which you may otherwise qualify for.
In a community property state (I'm using Texas laws), half of your husband's income belongs to you and half of your income belongs to him. Half of your withholdings belong to him, also. So what you will end up doing is totaling all of your income and deductions and splitting everything down the middle, with each of you reporting half of the total.
I'm simplifying this significantly, as there are exceptions. For example, he will pay all of the self employment tax on his net profit, but you will have to pay income tax on half of his net profit since the income is community property funds. Also, any itemized deductions would be split in half.
It is almost never beneficial to file MFS, especially in a community property state, and I definitely wouldn't do it without a COMPETENT tax professional's assistance.
I hope I've helped and haven't confused you too much. Good luck!
2007-03-01 11:28:58 · answer #4 · answered by figment_usa 5 · 0⤊ 0⤋
You can fiile married filing separately in a community property state. The returns are sent separately and are due April 17.
Just do both returns before you send in the one with the refund. Also, do a joint return for comparison just to make sure the separate returns are better for you.
2007-03-01 10:20:20 · answer #5 · answered by ninasgramma 7 · 0⤊ 0⤋
You are allowed to if you want to, and they don't have to be filed at the same time, although both must be filed by April 17.
Have you checked whether the extra he will pay by filing separately is more than what you'll save by filing separately? If you look at TOTAL tax for the two of you, it takes very rare circumstances for filing separately to be a financial advantage.
2007-03-01 18:27:45 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
It is probably much more beneficial for you to file, Married Filing Jointly, because there are many credits you are ineligible for when you file MFS.
Your husband can do his business taxes if he is incorporated on a K-1, then you just include that number on your regular tax return, or part of your return will include a Schedule C for the business portion.
Please check with a tax professional to make sure you are getting the best return possible!
2007-03-01 10:15:17 · answer #7 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 0⤋
Yes you can. And as long as both are postmarked no later than April 15, it doe's not matter when you send them in.
2007-03-01 09:39:57 · answer #8 · answered by ? 7 · 0⤊ 0⤋