Using the Married Filing Joint Status during Divorce
Every individual has one and only one filing status. This status is determined on the basis of whether you are married or not at the end of the year. The taxpayers who are married can file a joint tax return which will help them acquire additional tax benefits. However before deciding the type of filing joint status it is necessary to clearly understand the merits and demerits of filing status.
The marital status of an individual is determined by the laws of your state. The marital status of an individual is determined by the marital status on December 31st. It will help you to select a filing status that would be most beneficial to you. The filing of status can be done in the following ways in the period when you have applied for divorce. They are:
• Head of household (HOH)
• Married Filing Separate (MFS)
• Married Filing Jointly (MFJ)
If your divorce is finalized and you are not yet remarried then some regions use these methods of filing status which are given below:
• Single (S)
• Head of Household (HOS)
The merits of opting to use the married filling joint status are as follows:
If you select the best option for filing a joint statement then it is very helpful as you and your spouse have to pay very less tax. You can also get the benefits such as tax deductions and credits allowable if you are filing it together.
These benefits cannot be received in case you have filed it separately. This option is also beneficial in case, your decision of getting a divorce is final but you are planning to postpone it to the next year.
The demerits of using married filing Joint status are as follows:
It is not beneficial for the couples who belong to the higher income earning and are opting for joint filing. It would result in the increase of your overall federal income tax. The concept of marriage tax penalty will also come into action in such a case.
Hence before opting for filling a joint status, it is necessary to be aware of the merits and demerits and then opt for it. It is also necessary to review the various tax strategies in consultation with your attorney, be informed about the divorce laws and then opt for it. Based on your financial situation and the laws of the particular region, the attorney will provide you the right advice or strategy which would be beneficial for filling the status for you.
Thus, the above mentioned information is a useful resource for all those individuals who are planning for filling a married filling joint status. It also informs you about the merits and demerits which will surely help you to select the right option for filing a status.
Gloria Cox is the owner of divorce guide. She also helps to get information on divorce advice, divorce law.