Does the IRS penalize or give you less deductions and exemptions when you file seperately from your spouse? Meaning file as married filing seperately instead of married filing jointly.
2007-09-11 13:32:59 · 7 answers · asked by Sheila 6 in Business & Finance ➔ Taxes ➔ United States
No, IRS tells you to compute your taxes using both the options and choose the the one that is best for you.
This is from IRS publication 17: Your Federal Income Tax.
"Tip. If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Choose the method that gives the two of you the lower combined tax."
Normally, it is better to file Jointly. If you file separately, you may lose may credits and deductions.
2007-09-11 14:21:33 · answer #1 · answered by MukatA 6 · 0⤊ 0⤋
Yes. Certain deductions, exemptions and credits are not allowed or limited when married filing separate (MFS). These include the Earned income credit and rental losses. When MFS, if one spouse itemizes deductions, the other cannot use the standard deduction.
Sometimes it is better if couples file separately, but most of the time it is better to file joint.
2007-09-11 13:52:37 · answer #2 · answered by Mark S 5 · 0⤊ 0⤋
It is rather rare that MFS is an advantage over MFJ. The normal circumstances that cause folks to file MFS is that one of the parties owes back taxes or some other debt that would be collected by the IRS if they file MFJ. Once in awhile one of the parties has large medical bills that would be deductible by using MFS but would not if they filed MFJ. Most tax software allows you to make a comparison before you file. If that is an issue have the preparer do the comparison.
2007-09-12 05:22:02 · answer #3 · answered by ? 6 · 0⤊ 0⤋
Some deductions and credits are not available for Married-Filing Separate returns but others are still available.
2007-09-11 15:43:25 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
if you have kids it is best to file jointly other ways they do not give you all the deductions that you may be able to receive.
2007-09-11 13:41:10 · answer #5 · answered by vanessa m 2 · 0⤊ 0⤋
it is going to just about easily value you extra to each and each report as married submitting one after the different, your purely different allowable submitting status different than a joint return. Neither of you are able to report as unmarried or as head of important different and teenagers. submitting one after the different, you will lose eligibility for countless credit like a based care credit, and in case you itemize, she will't take a widespread deduction, might desire to the two itemize additionally or take 0 for deductions.
2016-12-13 06:38:24 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Yes you are penalized on certain deductions that you can take as a MFJ.
2007-09-11 13:59:11 · answer #7 · answered by Anonymous · 0⤊ 0⤋