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.
Are You Taking Advantage of These Legal tax Shelters?
Are You Taking Advantage of These Legal tax Shelters? Legal Tax Shelters The term “tax shelter” usually conjures up ideas or illegal activity. Like images of extremely wealthy individuals shipping their money overseas to hidden bank accounts, never to be discovered by U.S. tax officials. Not all tax shelters are shady. In fact, some tax…
Four Vital Traits of Great Leadership
Four Vital Traits of Great Leadership Anyone who holds a position of management, or has manager in his or her title is a leader by definition. However, not all managers are good leaders. The workplace is full of lousy managers. It takes great skills and a conscious effort to be a good leader. These following…
Key Skills for Successful Leadership
Key Skills for Successful Leadership Do you have the right skills to become a successful leader? Leadership skills vary greatly. Some leaders believe that the most important thing is to set high standards and then push for the greatest results. Other leaders prefer the idea of building a fun work culture in which everyone is…
Will the Higher Standard Deduction Really Pay Off at Tax Time?
Will the Higher Standard Deduction Really Pay Off at Tax Time? One of the biggest changes created by the Tax Cut and Jobs Act is the increase in the Standard Deduction. Essentially the standard deduction doubled for all types of filers. In 2017, if you were a single filer (or married filing separately) your standard…