Nationwide Tax Consulting Tells Benefits of Filing Tax Separately for Married People

Most individuals prefer to file taxes jointly to get benefits of tax deduction, but there are more benefits of filing separately as they don't realize individual filing can better their financial situation, mentioned Nationwide Tax Consulting. 

First of all, We will talk about the disadvantages of filing separately:

Couples prefer filing jointly because of several significant tax credits and deductions that are available to those who file jointly, such as:
  • Earned income credit
  • Child tax credit
  • Child and dependent care credit
  • Elderly and disabled credit
  • All deductions and credits of every kind relating to education, such as the American Opportunity and Lifetime Learning Credits, student loan interest deduction and tuition and fees deduction
  • Adjusted gross income (AGI) phaseout threshold of $0-$10,000 for traditional IRA deductibility
These were some reasons that are why married couples prefer joint filing, but the following benefits of filing separately could change your mind. 

Divorce or Separation: Couples who divorce, will not be able to file jointly and if they get separated and one doesn't pay taxes, IRS will catch one of them who they could find and reach first and will make him/her pay. 

Liability issues: Filing separately also may be appropriate if one spouse suspects the other of tax evasion. In that case, the innocent spouse should file separately to avoid potential tax liability for the other spouse. One spouse can also elect this status if the other refuses to file.

Diverse pay or deduction scales: Protecting yourself from a negative outcome isn't the only reason to file separately. Today, even the most happily married couple may come out ahead by choosing this route.

The primary instance is with childless couples, in which one spouse has considerably higher income, and the other spouse has substantial potential itemized deductions.

There are many other reasons to file separately and when a couple is unsure of which filing status to choose, it makes sense to compute the tax return both ways to determine which will give the biggest refund or lowest tax bill and help from Nationwide Tax Consulting to help you find a better way to file your taxes.

Comments

Post a Comment

Popular posts from this blog

Nationwide Tax Consulting | A Solution to Your All Tax Problems

None of us would ever want to receive an email letter from IRS that claim you owe them. Well, This might be a very concerned matter for an individual who recently got an update from the IRS and not able to pay the owed amount. At such time, finding a tax resolution company such as Nationwide Tax Consulting will be the right decision to look after your matter and get it resolved with a best possible solution. Florida based tax resolution company, Nationwide Tax Consulting, currently serving in three locations, i.e., Jupiter, Hallandale Beach, and Colorado. The company is notorious for their services and dedication to fix client's issues and provide them the best possible care. With a success record, Nationwide Tax Consulting has fixed many matters of Individuals with IRS and set their thousands of tax debts in $100. Jim E., Review from a client Nationwide Tax Consulting was able to settle my debt with the Internal Revenue Service for $100. Through the offer in compromise program m...
Read more

Tips by Nationwide Tax Consulting for Choosing a Consultant

Are you stuck on choosing a tax preparer? Well, One Size Fits All is not going to work here, and you need to be picky while choosing a preparer. The good one can save you a lot of money, and the bad one could cost you a lot of money. During tax season, quality and time are two essential aspects. First of all, you can go for online filing of taxes if you understand tax codes and willing to fill the forms. Keep in mind that mistakes in filing could cost you extra money by delaying your filing and can even affect your refund. So if you are not familiar with the process, then a tax preparer would be the right choice for you. When you are in a hurry for choosing a professional, you could be looking for past crucial warning signs when choosing your tax preparer. Here are some red flags for tax preparers: Preparers who promise larger refunds without a consultation. Preparers who plan on depositing your refund into their bank account or taking a portion of it....
Read more

How to Prevent IRS Penalties? | Nationwide Tax Consulting

No one desire to pay taxes, but there is no other way. Running from the IRS without paying taxes is impossible as they will do any possible thing to get the money you owe. Delaying filing or if you consider not to file and pay, which is not possible, will only result in penalties such as failure to file and failure to pay, which means it will only add more money to the amount of your taxes. IRS cares more to get taxes filed as here an individual or a business will report their income and taxes and then it's decided whether your income is eligible for taxes or not. Also, If someone is failed to file taxes before the deadline, IRS will add interest of 5% to the amount you owe and will keep adding since the day or month you do not file. So even if you are not able to pay, consider filing taxes before the deadline so it doesn't add further to your taxes. IRS also charge with failure to pay penalty, and they only penalize if a taxpayer doesn't negotiate with them in the propos...
Read more