Can a Married Couple Legally File Totally Separate Taxes?
- There are some situations where filing separately makes sense for a married couple. When one spouse is self-employed, for example, there are times when too many deductions are claimed that may not apply, and this attracts the attention of the IRS. If one spouse is currently being audited, that's another reason to keep returns separate, because the IRS will be entitled to both refunds to pay back any outstanding amounts if a couple files jointly.
Couples on their second marriage might file separately as well, especially if there are children from a previous marriage. Any outstanding child support payments can be taken from either spouse on a joint return. - The advantage of separate filing is mainly for the spouse without the complicated tax situation. By filing separately, the tax liabilities for each spouse are kept separate. Separate tax liabilities will prevent any garnishment or recovery of the tax returns of the spouse who had no issues with their taxes.
- The taxable income ceiling for married couples filing separately is lower than for couples who file jointly. Filing separately is also more complicated when claiming dependents. Personal exemption amounts are also lower, close to half of what a married couple who files jointly can claim.
- Since it is a different tax situation when married couples file separate returns, the taxable income ceilings are different as well. The taxable income ceiling for the 10-percent tax bracket is $8,500 as of publication. After that, the tax ceiling for the 15-percent tax bracket is $34,500 and for the 25-percent tax bracket is $69,675. In the 28-percent tax bracket, the taxable income ceiling is $106,150 and the ceiling for the 33-percent tax bracket is $189,575. After that amount income is taxed at 35 percent, with no ceiling. The amounts are double for married couples filing jointly.
