If you are married or considered married, your filing status can only be Married Filing Jointly or Married Filing Separately unless you did not live with your spouse for last 6 months and meet certain conditions.
Your spouse is never your dependent. Your spouse is never your dependent but you can file as Married Filing Jointly even if one spouse did not have any income. If you file Married Filing Separately, you can claim exemption for your spouse if the spouse did not have any income.
Married Filing JointlyIf you have income and your spouse does not have income or has a very little income, then it is better to file as Married Filing Jointly. On your tax return for 2011, you will get standard deduction of $11,600 and two exemptions of $3,700 each. If both of you have almost equal income, then it won't make much difference. Also many credits and deductions are not available if you file Married Filing Separately. So normally you should file as Married Filing Jointly, unless there is a compelling reason to file otherwise. Once you filed a joint return, you cannot choose to file separate returns for that year after the due date of the return.
Filing Joint Return with Foreign Alien Spouse. Read U.S. citizen or resident married to non-resident discussed later on.
Married Filing SeparatelyYou can also choose to file as Married Filing Separately. The filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. If you file your 2011 tax return as married filing separately, you will get standard deduction of $5,800 and your exemption of $3,700. For 2010 tax return, the standard deduction is $5,700 and exemption is $3,650.
If you are your spouse do not agree to file a joint return, you may have to file as Married Filing Separately unless you qualify for head of household status. If you are filing as Married Filing Separately, if one spouse itemizes the deductions, the other spouse can't claim standard deduction. Also many tax credits and deductions are not available if you file as married filing separately.
Special Rules. If you choose married filing separately as your filing status, the following special rules apply:
1. Your tax rate generally will be higher than it would be on a joint return.
2. You cannot take the earned income credit.
3. You cannot take the exclusion or credit for adoption expenses in most cases.
4. You cannot take the education credits (the Hope credit and the lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction.
5. Your exemption amount for figuring the alternative minimum tax will be half that allowed to a joint return filer.
6. 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).
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 then (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.
If you have filed a separate return, then you can change your filing status by filing an amended return using Form 1040X. You and your spouse can generally change to a joint return any time within 3 years from the due date of the separate return or returns.
Choosing between Married Filing Jointly and Married Filing Separately
You may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Choose the method that gives the two of you the lower combined tax unless you have your own reasons.
On the joint return, both the spouses are jointly and severally liable for the tax on the return, and interest and penalties. Even when only one spouse owes the tax, both spouses are liable for the full amount. Before the due date (including extensions) either spouse may revoke the election to file a joint return. After the due date (including extensions), the joint return can not be revoked.
Head of Household
You may be able to file as head of household. If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. You will also receive a higher standard deduction than if you file as single or married filing separately. For 2011, the standard deduction for taxpayer who files as single is $5800, while for the Head of Household it is $8,500 ($8,350 for 2010).
To file as head of household, you must meet all the following requirements.
1. You are unmarried or "considered unmarried" on the last day of the year. To be considered unmarried, you must have lived separate from your spouse during the last six months of the tax year. Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances.
2. You paid more than half the cost of keeping up a home for the year.
3. A "qualifying person" lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the "qualifying person" is your dependent parent, he or she does not have to live with you.
4. You must be able to claim an exemption for the child. However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child.
Spouse died during the year. If your spouse died during the year, you are considered married for the whole year for filing status purposes.
If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. For the next 2 years, you may be entitled to the filing status Qualifying Window(er) With Dependent Child.
If you remarried before the end of the tax year, you can file a joint return with your new spouse. Your deceased spouse's filing status is married filing separately for that year.
Nonresident alien spouse. You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. However, your spouse is not a qualifying person for head of household purposes. Even if you are considered unmarried for head of household purposes because you are married to a nonresident alien, you are still considered married for purposes of the earned income credit (unless you meet the requirements).
Nonresident tax return. Even if you are married you can not file a non-resident tax return as married filing jointly. Your filing status is single non-resident alien or married non-resident alien. You can not claim exemption for your spouse even if the spouse's income was $0 in the year. Also you can not take exemption for a dependent. There are exceptions for the residents of Mexico, Canada and South Korea.
If you are married, you have a qualifying dependent and did not live with your spouse for last six months, you can choose to file as single non-resident alien.
U.S. citizen or resident married to non-resident. If you are a U.S. citizen or resident who is married to a non-resident alien or a foreign person, you can only file as married filing jointly or married filing separately. You can file joint return even when your spouse has never been to the U.S. If you file joint return, you must both declare your worldwide income for the year. If you or your spouse paid taxes in a foreign country, you can file Form 1116 Foreign Tax Credit or/and Form 2555 Foreign Earned Income Exclusion. (Read U.S. Citizens or Residents with Foreign Income.)
If you are filing as married filing separately, you must enter your spouse's full name in the space provided and must enter your spouse's SSN or ITIN in the space provided unless your spouse does not have and is not required to have an SSN or ITIN. In that case, write nonresident or N R A in the space for SSN.
A Qualifying person is any one who is one of the following
1. A qualifying child (such as a son, daughter, or grandchild) who lived with you more than half the year and is not married. It is not required that you must claim exemption for the child.
2. A qualifying relative who is your mother or father for whom you can claim an exemption.
3. A qualifying relative (such as a grandparent, brother, or sister) who lived with you for more than half the year and you can claim as exemption for him or her.
(Your fiance, your girl friend or your boy friend, even if you can claim them dependent, do not make you head of household.)
Common law marriage. You are considered married for the whole year if you are living together in a common law marriage that is recognized in the state where you now live or in the state where the common law marriage began. Once the common law marriage is recognized, the divorce is not common law divorce. It must be regular divorce just like in case of married persons.
More Articles:
Your Filing Status
1. Filing Status for Married
2. Head of Household
Exemptions for Dependents
1. Requirements for claiming a dependent
2. Child of separated or divorced parents
Filing Requirements
1. Filing Requirement for a Dependent
2. 2009 Filing Requirements
Your Income
1. W2 vs 1099-Misc: Employee vs Independent Contractor
2. Tax Filing by Self Employed Sole Proprietor or Independent Contractor
3. Filing W4 Employee’s Withholding Allowance Certificate
Your Foreign Income
1. U.S. Citizen or Resident with Foreign Income
2. Foreign Bank and Financial Accounts
Income Exemptions and deductions
1. Moving Expenses
2. Itemized deductions
3. Student Loan Interest Deductions
Income Adjustments -- Retirement Plans
. Trad IRA and Roth IRA
2. Elective Deferrals 401(k) Plans
Status of Your Tax Refund
1. When will I get my tax refund?
U.S. Gift tax and Inheritance Tax
1. The U.S. Gift Tax
2. Tax on Inheritances
Sale of Your Home
1. Profit from the Sale of Your Home
2. Foreclosure or Repossession of Main Home
3. First-Time Homebuyer Credit
Sole Propreitor, Partnership & Corporations
1. Self Employed Sole Proprietor or Independent Contractor
2. Partnerships
3. S. Corporations
State Tax Return
1. Working in Two or More States
What's New for 2009
What's New for 2009
...Complete List of Articles
Any Question?
If you have a question, send me an email: ustaxfiling@gmail.com
Forum for India Taxes: http://www.mytaxes.in/
Your spouse is never your dependent. Your spouse is never your dependent but you can file as Married Filing Jointly even if one spouse did not have any income. If you file Married Filing Separately, you can claim exemption for your spouse if the spouse did not have any income.
Married Filing JointlyIf you have income and your spouse does not have income or has a very little income, then it is better to file as Married Filing Jointly. On your tax return for 2011, you will get standard deduction of $11,600 and two exemptions of $3,700 each. If both of you have almost equal income, then it won't make much difference. Also many credits and deductions are not available if you file Married Filing Separately. So normally you should file as Married Filing Jointly, unless there is a compelling reason to file otherwise. Once you filed a joint return, you cannot choose to file separate returns for that year after the due date of the return.
Filing Joint Return with Foreign Alien Spouse. Read U.S. citizen or resident married to non-resident discussed later on.
Married Filing SeparatelyYou can also choose to file as Married Filing Separately. The filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. If you file your 2011 tax return as married filing separately, you will get standard deduction of $5,800 and your exemption of $3,700. For 2010 tax return, the standard deduction is $5,700 and exemption is $3,650.
If you are your spouse do not agree to file a joint return, you may have to file as Married Filing Separately unless you qualify for head of household status. If you are filing as Married Filing Separately, if one spouse itemizes the deductions, the other spouse can't claim standard deduction. Also many tax credits and deductions are not available if you file as married filing separately.
Special Rules. If you choose married filing separately as your filing status, the following special rules apply:
1. Your tax rate generally will be higher than it would be on a joint return.
2. You cannot take the earned income credit.
3. You cannot take the exclusion or credit for adoption expenses in most cases.
4. You cannot take the education credits (the Hope credit and the lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction.
5. Your exemption amount for figuring the alternative minimum tax will be half that allowed to a joint return filer.
6. 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).
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 then (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.
If you have filed a separate return, then you can change your filing status by filing an amended return using Form 1040X. You and your spouse can generally change to a joint return any time within 3 years from the due date of the separate return or returns.
Choosing between Married Filing Jointly and Married Filing Separately
You may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Choose the method that gives the two of you the lower combined tax unless you have your own reasons.
On the joint return, both the spouses are jointly and severally liable for the tax on the return, and interest and penalties. Even when only one spouse owes the tax, both spouses are liable for the full amount. Before the due date (including extensions) either spouse may revoke the election to file a joint return. After the due date (including extensions), the joint return can not be revoked.
Head of Household
You may be able to file as head of household. If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. You will also receive a higher standard deduction than if you file as single or married filing separately. For 2011, the standard deduction for taxpayer who files as single is $5800, while for the Head of Household it is $8,500 ($8,350 for 2010).
To file as head of household, you must meet all the following requirements.
1. You are unmarried or "considered unmarried" on the last day of the year. To be considered unmarried, you must have lived separate from your spouse during the last six months of the tax year. Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances.
2. You paid more than half the cost of keeping up a home for the year.
3. A "qualifying person" lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the "qualifying person" is your dependent parent, he or she does not have to live with you.
4. You must be able to claim an exemption for the child. However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child.
Spouse died during the year. If your spouse died during the year, you are considered married for the whole year for filing status purposes.
If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. For the next 2 years, you may be entitled to the filing status Qualifying Window(er) With Dependent Child.
If you remarried before the end of the tax year, you can file a joint return with your new spouse. Your deceased spouse's filing status is married filing separately for that year.
Nonresident alien spouse. You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. However, your spouse is not a qualifying person for head of household purposes. Even if you are considered unmarried for head of household purposes because you are married to a nonresident alien, you are still considered married for purposes of the earned income credit (unless you meet the requirements).
Nonresident tax return. Even if you are married you can not file a non-resident tax return as married filing jointly. Your filing status is single non-resident alien or married non-resident alien. You can not claim exemption for your spouse even if the spouse's income was $0 in the year. Also you can not take exemption for a dependent. There are exceptions for the residents of Mexico, Canada and South Korea.
If you are married, you have a qualifying dependent and did not live with your spouse for last six months, you can choose to file as single non-resident alien.
U.S. citizen or resident married to non-resident. If you are a U.S. citizen or resident who is married to a non-resident alien or a foreign person, you can only file as married filing jointly or married filing separately. You can file joint return even when your spouse has never been to the U.S. If you file joint return, you must both declare your worldwide income for the year. If you or your spouse paid taxes in a foreign country, you can file Form 1116 Foreign Tax Credit or/and Form 2555 Foreign Earned Income Exclusion. (Read U.S. Citizens or Residents with Foreign Income.)
If you are filing as married filing separately, you must enter your spouse's full name in the space provided and must enter your spouse's SSN or ITIN in the space provided unless your spouse does not have and is not required to have an SSN or ITIN. In that case, write nonresident or N R A in the space for SSN.
A Qualifying person is any one who is one of the following
1. A qualifying child (such as a son, daughter, or grandchild) who lived with you more than half the year and is not married. It is not required that you must claim exemption for the child.
2. A qualifying relative who is your mother or father for whom you can claim an exemption.
3. A qualifying relative (such as a grandparent, brother, or sister) who lived with you for more than half the year and you can claim as exemption for him or her.
(Your fiance, your girl friend or your boy friend, even if you can claim them dependent, do not make you head of household.)
Common law marriage. You are considered married for the whole year if you are living together in a common law marriage that is recognized in the state where you now live or in the state where the common law marriage began. Once the common law marriage is recognized, the divorce is not common law divorce. It must be regular divorce just like in case of married persons.
More Articles:
Your Filing Status
1. Filing Status for Married
2. Head of Household
Exemptions for Dependents
1. Requirements for claiming a dependent
2. Child of separated or divorced parents
Filing Requirements
1. Filing Requirement for a Dependent
2. 2009 Filing Requirements
Your Income
1. W2 vs 1099-Misc: Employee vs Independent Contractor
2. Tax Filing by Self Employed Sole Proprietor or Independent Contractor
3. Filing W4 Employee’s Withholding Allowance Certificate
Your Foreign Income
1. U.S. Citizen or Resident with Foreign Income
2. Foreign Bank and Financial Accounts
Income Exemptions and deductions
1. Moving Expenses
2. Itemized deductions
3. Student Loan Interest Deductions
Income Adjustments -- Retirement Plans
. Trad IRA and Roth IRA
2. Elective Deferrals 401(k) Plans
Status of Your Tax Refund
1. When will I get my tax refund?
U.S. Gift tax and Inheritance Tax
1. The U.S. Gift Tax
2. Tax on Inheritances
Sale of Your Home
1. Profit from the Sale of Your Home
2. Foreclosure or Repossession of Main Home
3. First-Time Homebuyer Credit
Sole Propreitor, Partnership & Corporations
1. Self Employed Sole Proprietor or Independent Contractor
2. Partnerships
3. S. Corporations
State Tax Return
1. Working in Two or More States
What's New for 2009
What's New for 2009
...Complete List of Articles
Any Question?
If you have a question, send me an email: ustaxfiling@gmail.com
Forum for India Taxes: http://www.mytaxes.in/
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