Filing Status Advice for Married Couples

Unfortunately many taxpayers mistakenly believe that when you get married, you must file a joint return with your new spouse. However, depending on your unique financial situation you might benefit more from a filing as Married Filing Separately or, if you are separated from your spouse and you do not live together, you can file as Head of Household.

December 31st Rule

According to the IRS, if you get married before December 31st, you are considered married in the eyes of the federal government. Therefore, even if you were unmarried for a majority of the year you will still need to let the IRS know that you are a married taxpayer. You do this by filing Married Filing Jointly or Married filing Separately.

Married Filing Jointly

Most married taxpayers choose to file a joint return, in doing so the couple can reap several tax incentives. When you file a joint return, the taxable incomes of both spouses are combined on a single federal tax return and the tax rate is applied to the total income of both taxpayers. In order to qualify for this filing status you need to be a legally married, or recognized as married under 'common law' by the state you reside in.

When you file a joint return, both spouses are held accountable for any resulting tax liability.

Married Filing Separately

Although you are married, you are not legally required to file a joint tax return. You also have the option to file separate returns using the Married Filing Separately status. Although not always, this status is usually suggested for couples with significantly different income levels. For example, if your spouse owned a successful business and made the majority of your household income, it may be more advantageous to file separate returns. If you are unsure of which status is better for your unique financial situation, then you could always prepare your return both ways to see which results in a lower total tax liability.

You may be required to file separately if you or your spouse are claimed as a dependent on another taxpayers return, or one spouse is a non-resident alien and does not choose to be taxed on the non-resident alien's worldwide income.

When you file separate returns, there are a number of credits you will not be eligible to claim including the Elderly and Disabled Tax Credit, the Earned Income Tax Credit and the Child and Dependent Care Tax Credit. However, there are plenty of examples of when a married couple might benefit from the Married Filing Separately status. For example, if one spouse has a lot of medical expenses then they might only qualify for the Medical Expense Deduction if they file a separate return since expenses need to exceed 7.5% of the adjusted gross income on your return.

Head of Household

Typically the Head of Household status is only available to unmarried taxpayers. However, if you did not live with your spouse for the last six months of the year then you might qualify for the Head of Household status. For more information, check out this article on the filing status on IRS.gov.

The Tax Lady Roni Deutch and her law firm Roni Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax lawyers who can fight IRS tax liens on your behalf.