your tax filing status when planning for divorce
enough to think about taxes under normal circumstances. Finding yourself
amid a divorce action can make this task even more daunting. A little
planning, however, may ease this burden. Consider, for example, the following
ideas about your tax filing status if your divorce wasn't final by December
of filing a joint tax return. It is often better, tax-wise, to file
a joint return because of certain benefits that are available to joint
filers. Benefits such as the earned income credit, the credit for the elderly,
and certain other tax credits and deductions are reduced or unavailable
for married taxpayers who file separate returns.
of filing a separate tax return. Filing a separate return may make
sense in a situation where your spouse isn't cooperating with you. This
could especially be true if your bank requires a tax return before they'll
approve a loan. Another reason for filing a separate tax return may be
that you suspect that your spouse has unreported income. Filing separate
returns in these situations may be a practical solution.
Can you change
your mind about your filing status after your return has been filed? You
can change from separate to joint filing status by filing an amended return.
However, once a joint return has been filed, you may not change to separate
filing status after the return's due date.
it makes sense to file a separate return because you'll owe less tax.
An example is where medical expenses are not deductible because your
joint income is too high. With a separate return, you may be able to
claim a deduction.
line: You should calculate your tax liability under both joint and separate
filing choices to see which results in a lower tax. Numerous other tax
and financial issues could be affected by your divorce. If you'd like tax
planning assistance, give us a call. We can work with your attorney to
help you make informed choices that take taxes into account.
For the assistance
you need in minimizing your taxes this year and every year, contact us
at (703) 370-0019 or email at firstname.lastname@example.org.
We are here to help.
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