How to Choose Your Tax Filing Status if You’re Married
If you’re married then you’ve probably just always filed a joint return with your spouse. In fact, chances are you’ve never even considered filing any other way. However, for some people, married filing jointly is not the best option. Depending on your situation, it could be more advantageous to file separately. Here are some things to consider when choosing what filing status to use if you are married.
While in many cases, filing together could help lessen the tax hit on you and your spouse it doesn’t always work that way. Sometimes, the only advantage of filing jointly is that you only have to worry about one return. If you and your spouse both work and one of you earns a lot more than the other, then it will typically be better to file jointly, as it will usually help reduce your combined tax bill.
On the other hand, there are other circumstances wherein it that might better to file separately. For example, if you both have taxable income and one of you has a lot of itemized deductions limited by adjusted gross income (AGI), then it might make sense to file separately. That’s because by filing separately, you can also separate both of your AGI’s. If your AGIs are lower on your separate returns, you can save on your tax bill.
This is just one example of where filing separately from your spouse could be helpful. However, it’s best to weigh all your options before making that choice. If you’re not sure what status to choose, you can contact us at GROCO for help. We’ll look at all the numbers and all the possible scenarios and choose the best path for you. Call us at 1-877-CPA-2006, or click here.
Is the Deal Between Burger King and Tim Horton’s Really an Inversion?
Is the Deal Between Burger King and Tim Horton’s Really an Inversion? If you haven’t heard already, Burger King recently announced its plans to acquire Tim Hortons Inc. a Canadian coffee and doughnut chain. There is nothing wrong with that news in of itself, and depending on whom you ask there is nothing wrong with…
Who is to Blame for USA Companies Leaving the Country for Lower Taxes?
Who is to Blame for USA Companies Leaving the Country for Lower Taxes? Imagine you owned or ran a large company that was making a lot of money. However, instead of seeing all of that money count as profit, you were watching a large portion of it being taken due to the United States bloated…
Qualified Small Business Stock: An Opportunity for Investors
Qualified Small Business Stock: An Opportunity for Investors Updated: 11/16/10 Aiming to give a boost to developing small businesses, Congress granted an unusual tax break, allowing taxpayers who buy newly issued shares of qualified small business stock (QSBS) and hold it for five years to exclude from taxation half of their capital gain realized on…
Are You Still Waiting For Your Tax Refund?
Does it feel like this year is just flying by? The Calendar on your wall is right. The year is almost half over already. Where did all that time go? More importantly, where the heck is your tax return? It’s one thing to still be waiting for your return if you waited to file it…