When it comes time to working on your taxes, there are a lot of things to keep in mind. It is not as easy as some people would like to think and even figuring out the right filing status for your needs is going to be a bit of a challenge. While you only have one choice if you are single and unmarried, those who are married can choose between filing separately or jointly and each of them are going to have different benefits and steps that you have to take to complete them properly.
Most married couples are going to choose to file jointly. This allows them to keep all of their information in one place and they often get a tax benefit from filing together versus filing separate. This can save them a lot of time and money in the long run and will make things much easier to handle. But there are some times when you may find that filing separately, even when you are married, is going to be a better option for your family. No matter which filing status you are choosing to do, make sure to contact a tax professional in your area. They will be able to go over the two filing options and help you to pick the one that is right for your needs.
Reasons to File Separately
There are many reasons that you may consider to file your tax returns separately from your spouse. While it is usually easier to file together and there are tax deductions that are only available for couples who file together, there are some times when you may choose to file separate instead.
One reason for filing separate is when one spouse runs their own business. They may choose to file a tax return on their own that can hold all the business information and keep it separate from their personal information. This is an easy way to get the business deductions and to keep everything in its own place. Everything that does not pertain to the business will be saved for the other tax return so it is all in its place. This one is pretty easy to keep track of and can be beneficial when you want to keep your business life and personal life separate for tax reasons.
Another reason is if you would like to keep yourself protected. Some couples like to file separately so that if one spouse is up to something and gets in trouble with the IRS, only that spouse will be held liable. This one is all about protection, but you do need to be careful to ensure that you are getting your items separated properly. You will only be allowed to claim things once, so figure out who will get the home, the children, and other things before getting started.
Your tax professional will be able to help out with this tax filing so you are able to get the most out of it without making a mistake.
Keeping the Assets Separate
You are going to need to determine how to separate your assets when it comes to filing separately. Both of you are not able to pick this option in the hopes of claiming the children twice and the mortgage on two different tax returns. You will need to determine which spouse is going to be able to claim each of the items that you own rather trying to claim both of them.
If you are separating out your tax returns in order to keep personal and business information separate, this is not as hard to deal with. Anything that has to do with the personal life, such as the house, children, and vehicles, should be put on the spouses’ tax return who isn’t working on the business. Anything that has to do with the business needs should be placed on the tax return for that one. It does get a little more complicated when it comes to just separating the returns out for protection. The two of you will need to determine how to best do this process and which one makes life easier.
Your tax professional will be able to take a look at your tax return and will go through to determine which option is the best for you. Our professional will take a look at several different options to help you figure out which can save you the most money when it comes to your tax bill.
Getting Your Professional Help
Figuring out which of these methods is the right one for your family is never easy. What works for one family is not always going to work well for another family. You should bring in the help of a professional who will be able to assist you in getting all of your tax return work done without all of the hassle. They can also answer all of your questions and ensure that you are getting the very best out of your taxes this year.
Don’t try and go through the tax season on your own. Consider hiring a professional who can help you get through all of your tax questions and who can ensure that your tax return is done right the first time. Contact our offices today to get started with your tax returns today, no matter what situation you are dealing with in the mix.
M-E Accounting & Tax Services, Inc.