Married Filing Separately- Here’s What You Need to Know

Marriage can bring about the merging of responsibilities for a couple including combining accounts and assets. However, couples may find that some “separation” might be the best bet for them. This can be true in the case of filing taxes. Married couples, including those that are separated, can choose to file their taxes jointly or separately. While one may think the obvious choice is to file jointly, there are some advantages to filing separately for those who qualify. Married filing separately is a tax filing in which a legally married couple record their individual incomes, liabilities, and deductions separately. For some, married filing separately may seem counterintuitive at first glance, but there are some real advantages for those who qualify.

What are some advantages of filing separate tax returns?

One spouse has substantial medical expenses
One spouse has itemized deductions that will ultimately reduce income
Both spouses make roughly the same amount of money
A couple is separated or filing for divorce
One spouse owes a large sum in taxes (filing jointly could result in an IRS lien or levy)

What is required for married filing separately?

The couple must live or have lived in the same house during the filing year.
Combined gross income, half of social security benefits, and all tax-exempt interest must total more than $25,000
You and your spouse must both file separate tax returns.

While married filing separately may sound appealing, don’t make any changes in your tax filings just yet. Some couples may feel that combining incomes will push them into a higher tax bracket, therefore allowing access to more taxable income, but the IRS has numerous programs to mitigate this and other concerns. If one spouse makes significantly more (or less) than the other, filing separately may be a good option. There are some definite tax breaks and benefits for couples filing their taxes jointly. When deciding on the best approach to take for filing your taxes, the income of both spouses should be a consideration. Some of the tax breaks include:

The American Opportunity Tax Credit, which requires a modified adjusted gross income for couples filing jointly
The Child and Dependent tax credit
Education tax credits
The Earned Income Tax Credit can be claimed

Summary

There are certainly some huge advantages to filing your taxes as married filing separately with your spouse but if you do not qualify under any of the terms listed above, it’s best to file as married filing jointly in order to take advantage of the tax incentives for filing this way.

The best way to determine how you and your spouse should file your taxes may simply be to explain your situation to a professional to let them help you make the right choice. You can also do your taxes both ways to see which is most beneficial. Just be sure not the go all the way to the end to complete the filing process until you’re sure how you want to handle things.

Contact Us

I am Maine’s IRS Problem Solver. My firm helps Maine taxpayers in trouble. If you or someone you know in Southern Maine wants more information on how to resolve your unpaid taxes, please feel free to contact me directly at 207-502-7181 or by filing out my contact form. A Maine tax attorney can help you consider your options.

James D. Wade, Esq.
Law Office of James D. Wade
57 Portland Road, Unit 3
Kennebunk, ME 04043
207-502-7181
jwade@jdwadelaw.com
www.jdwadelaw.com

Our Satisfied Clients

Do you owe in back taxes to the IRS and are under audit? Afriad to deal with the IRS? Hear from a few of our satisfied clients who we helped navigate their tax issues.

An incredible result!

I engaged Jim Wade earlier in 2018 to represent me in an IRS collection case arising out of several years of unpaid personal federal taxes, and was impressed by his professionalism, knowledge of tax laws, and experience in representing taxpayers before the IRS. At our first meeting he explained clearly the IRS collection process and recommended a number of steps I should take to put our position in the best possible light. He worked closely with me to gather all necessary information and formulate an offer of a repayment plan for the nearly $360,000 I owed in unpaid taxes, penalties, and interest.

David G., Falmouth, ME

Incredible Commitment and Service

My husband and I were looking to qualify for an offer in compromise with the IRS to pay off taxes that we owed. We hired Mr. Wade for a very fair price. After he investigated and crunched the numbers in every way possible to help us, he concluded that we would not qualify. His commitment to helping us did not end there. He continued to work with us to pay off our taxes, offering his expert advice. He answered all our questions thoroughly and continued to help us see this through to the end. We are very grateful for all of his hard work, his knowledge in tax law, and his full commitment to us as his clients. I would recommend his firm to anyone who needs help in taking care of and resolving any tax issues they may have no matter how big or small.

Heather C., Gardiner, ME

Highly Recommended

Jordan H., Wells, ME

Easy to Work with

We have worked with James on an IRS issue that had been on-going since 2019. The IRS claimed we owed them more than we had paid in taxes on our Federal return. When we followed James’s advice and filed an amended return, the IRS agreed with James position and we received a significant refund (enough to buy a good used car!). James is easy to work with and highly responsive. He is willing to answer emails and provide advice without always charging hourly fees. Highly recommend him and I will use him in the future if we ever have IRS issues again.

Stuart J., Florida

kind, helpful, and reassuring

I am an attorney in a different field of practice and I have clients with a variety of income tax needs. I need the tax information I receive and pass along to be spot-on accurate. I recently had an extended consultation with James, and I found that he has in-depth knowledge of the tax laws. His explanations were in plain English and provided great clarity. His demeanor is kind, helpful, and reassuring. He is a valuable professional resource.

Brent Poirier, Attorney in Portsmouth NH

Fantastic Tax Attorney

I was referred to James Wade for a very cumbersome tax lien bill problem that was put on my home by the IRS. James was extremely helpful and gave me tremendously helpful legal advice whenever I had a question or thought of going a different legal route. Thank goodness to his legal advice I waited it out and he did accomplish and was successful with having the lien removed from my property. This was so crucial as I am a single mother and needed this legal help desperately and he saved us from a lot of financial agony…seriously! If you have a tax issue James would be your go to guy for his legal expertise. He’s very helpful, prompt and available to you. He will get back to you right away if you leave him a message and actually prefers the phone as a better means of communication depending on the status of your case. To me that means he really cares and takes each case personally and wants to see each client be successful. I’m so glad that he was referred to me and I could not have asked for a better nor more competent attorney! Highly, highly recommend him!!

Elena B, Westbrook, ME

info@beacontaxadvocates.com

207-502-7181

Married Filing Separately- Here’s What You Need to Know