Choosing your filing status for your taxes ultimately determines the deductions and credits you can take. So, what's your best bet? As a single individual, you don't have much choice, but as someone who is legally married, you have two options: married filing jointly, and married filing separately.
These decisions for married couples can be complex to make. Filing together/jointly means you file one return together, and married filing separately means you and your spouse file your own returns and your incomes and expenses are considered separate.
Filing together as a married couple is a great idea if your income and finances are straightfoward - similar salaries, no large deductions, no plan to itemize. To see if filing separately is for you and your spouse, you shhould both consult an experienced Denver accountant to help you with this major decision. Often times, married filing separately is a good idea if:
- You have a large amount of deductions
- You're planning on getting a divorce
- If your spouse owes the federal government money
- A lot was earned by either spouse in capital gains and dividends
- You have unearned income
- You want to protect yourself legally
These are just some of the reasons why you may want to file separately instead of jointly as a married couple. Regardless, the best rule of thumb is to seek out the help of a Denver tax professional who can assist you in making this complex decision. We specialize in this type of assistance at Bloch, Rothman and Associates in Denver. Call us today and get ahead for your 2015 taxes. Start making complex decisons now so you can be stress-free come tax time. (303) 321-7160.