If you’re married, there are two status options you can choose between when filing your federal tax return: Married Filing Separately and Married Filing Jointly. When spouses file their taxes separately, they each complete their own Form 1040. The IRS discourages this by offering hefty tax advantages to those who file jointly. If you file separately, you could disqualify or limit your use of potentially valuable tax breaks, including, but not limited to:
- The Earned Income credit
- The child and dependent credit
- The American Opportunity credit
- The Lifetime Learning credit
- The adoption credit
- The credit for the elderly and disabled
- The deduction of net capital losses
- The deduction for college tuition expenses
- The student loan interest deductions
- Traditional IRA deductions
- Roth IRA contributions
- Tax-free exclusion of Social Security benefits
- Tax-free exclusion of U.S. bond interest
At Wasvary Tax Services we have multiple years of experience with helping our clients with IRS Tax payment plan situations. Our expertise can help guide you in what can often seem like a totally overwhelming, perhaps even impossible, process.