FAL, a CPA Firm in Las Vegas Explains Some Of the Differences to Filing Taxes Jointly or Separately
Taxes are hardly ever on the minds of newlyweds or anyone standing at the altar saying, “I do.” Even so, understanding you and your spouse’s optimal filing status is essential if you want to maximize tax savings while minimizing liability. The following information explains a few indicators you can use to determine whether you and your spouse should file your taxes jointly or separately. After understanding the differences, it’s important to call a CPA firm to evaluate the best filing status for you.
Filing Jointly
Most couples find this option to be the most financially beneficial. Typically, filing jointly offers the following benefits:
Claim tuition and educational fee deduction
Claim student loan deductions
Claim earned income credits and education credits
Claim any dependent and child care credits
Claim disabled and elderly credits
Allows for one partner to itemize while the other takes a standard deduction
Claim tax-free exclusion of Social Security Benefits and U.S. bond interest
Benefit from the other spouse’s tax breaks
Married Filing Separately
Even though filing separately offers fewer tax benefits, many couples choose this option. Some of the most common reasons for filing separately are:
When both spouses separate their finances
When both spouses maintain a separate residence with one spouse qualifying for head of household filing status
When neither spouse assumes legal or financial responsibility for the other spouse’s tax burden
When each spouse is only responsible both financially and legally for their individual separate tax return.
When one party enters the marriage with a former spouse’s tax liability.
When one spouse gets married with debt that is past due, which could possibly result in a tax lien or be deducted from their taxes.
Let Our Las Vegas CPA Firm Prepare Your Tax Paperwork
Before you choose your filing status, consult with our CPA firm in Las Vegas and perform the following:
Check you and your spouse’s withholding status, which determines the amount of taxes taken from you and your spouse’s paycheck.
Let the Social Security Administration know of any name changes.
Make sure you have all of your forms, income statements, deductible expenses, and receipts available.
Pay attention to any possible tax breaks you may qualify for such as education credits, mortgage interest, charitable donations, investment losses, and any other tax breaks available.
We can prepare your taxes and determine whether filing jointly or separately is the right choice for you. Give us a call at 702-870-7999 today to schedule an appointment.