Married couples sometimes wonder whether their living arrangement impacts their IRS filing statuses. If you are searching online for “Can I file single if I am married but not living together?” it may be time to seek the advice of a qualified tax attorney who can provide insight into your specific situation and how the “married filing separately” status works.
Married couples who live apart have a few options regarding tax statuses, including married filing jointly (MFJ), married filing separately (MFS), and head of household for a qualifying spouse. Importantly, you may not file as single if you are married, regardless of separation status or living arrangements.
Understanding the distinctions between these statuses and the benefits each offers is essential.
Couples who choose MFJ tax status may benefit from more tax breaks because they can file jointly with both incomes and deductions on a single return. The tax implications of separation are important to consider. Choosing MFS status means two separate returns, which can reduce qualifying tax breaks but may be faster and less complicated than MFJ status.
Joint filing allows married couples to access the following tax credits:
While the average deduction for a married couple filing jointly was $30,000 last tax year, for those filing separately or single, the deductions are only up to $15,000.
However, there are drawbacks to filing jointly. First, the nature of joint liability means that one spouse’s financial issues can affect the other. Additionally, the combined salaries may put the couple in a higher overall tax bracket and disqualify them for certain deductions.
Filing taxes without your spouse may be better and less complicated if you are estranged, or they may not pay the taxes they owe, as this can leave you responsible for a major tax bill. Filing separately can also be beneficial if one spouse has outstanding child support payments due, as the IRS may revoke this from their portion of any refund.
Those with significant medical expenses should also consider that when filing jointly, their combined income may become too high to qualify for the Medical Expense Deduction. To qualify for the deduction, claimed medical expenses must exceed 7.5% of someone’s adjusted gross income (AGI). Filing separately can be better for those who experienced significant medical hardship in the last year, as these can be itemized deductions.
Married couples who file separately may qualify for head of household status, which includes bigger tax breaks. To qualify, the couple must have lived apart over the last six months, and one partner must have funded over half of the care for their dependents. The dependents must also have lived with one partner for more than half of the year.
Filing as head of household increases the standard deduction for separate filers, with a cap of $22,500 in the last year. Typically, the custodian parent can still file as head of household if the noncustodial parent claims the child as an exemption on their separate tax form.
Levy & Associates provides tax consultancy services to Florida residents and can help married couples living separately navigate their filing statuses.
To schedule a consultation, call 877-620-6490 or contact Levy & Associates online.
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