Are there stipulations for married couples filing separate tax returns?

Answer 1

1. Your tax rate generally will be higher than it would be on a joint return.
2. Your exemption amount for figuring the alternative minimum tax will be half that allowed to a joint return filer.
3. You cannot take the credit for child and dependent care expenses in most cases, and the amount that you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 if you filed a joint return).
4. You cannot take the earned income credit.
5. You cannot take the exclusion or credit for adoption expenses in most cases.
6. You cannot take the education credits (the Hope credit and the lifetime learning credit), or the deduction for student loan interest.
7. You cannot exclude any interest income from qualified U.S. savings bonds that you used for higher education expenses.
8. If you lived with your spouse at any time during the tax year:
a. You cannot claim the credit for the elderly or the disabled.
b. You will have to include in income more (up to 85%) of any social security or equivalent railroad retirement benefits you received, and
c. You cannot roll over amounts from a traditional IRA into a Roth IRA.
9. The following deductions and credits are reduced at income levels that are half those for a joint return:
a. The child tax credit,
b. The retirement savings contributions credit,
c. Itemized deductions, and
d. The deduction for personal exemptions.
10. Your capital loss deduction limit is $1,500 (instead of $3,000 if you filed a joint return).
11. If your spouse itemizes deductions, you cannot claim the standard deduction. If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return.

Answer 2

You may file a joint return or as married filing separately as long as you are married. You can't file as single.

Answer 3

If you are married, it's your choice whether you file a joint return or file as married filing separately. There are a number of credits you can't take on a MFS return, and if one spouse itemizes, the other can't take a standard deduction - must either itemize, or show zero for deductions.

Answer 4

"Married Filing Separately" is the least desirable filing status to use. Try it both ways and you will see for yourself. Married Filing Jointly will be your best situation.

Answer 5

Filing jointly is an option. If you have children it will cost you $1,000 each if you don't file jointly.