Filing Status if You Are Married

One thing I have noticed in doing taxes is that some married couples will come in and want to file Married Filing Separately (MFS) versus Married Filing Jointly (MFJ). Usually the reason is that only one works, and the spouse that works thinks it is better to file MFS. I'm here to tell you that 98% of the time it is to the taxpayer's advantage to file MFJ.

For starters, if the couple has children, they cannot claim the Earned Income Tax Credit. Also, there is the matter of another exemption, which in 2006 was $3300, which helps reduce taxable income. There are many other benefits also, but these are 2 of the main ones. This right here will cost you money.

There is also the standard deduction. In 2006, this figure was $10,300 for MFJ. The amount for MFS was $5,150, the same was filing single. As you can see, that is over $5000 in tax benefits to you.

In addition, the Modified Adjusted Gross Income (AGI) phaseout range in 2006 for deductible IRA contributions, with an active participant, was $75-85,000 for MFJ, and $0-10,000 for MFS and living with the spouse who is active in the plan

This past tax season, I had couples who wanted to file MFS instead of MFJ. I explained to them at the beginning that it is usually better to file MFJ. After completing their taxes, but before sending it to the IRS, I would have the software run the comparison program, and every time the tax benefit was better for MFJ. The amounts ranged from a couple of hundred to thousands of dollars, all in favor of the taxpayers.

There was 1 common scenario to all of these clients: ALL had been told by someone it was better to file MFS. I gave them this advice, and I will give it here to you: Do not listen to tax advice by anyone who does not prepare taxes. Period. I had a lot of other clients who were also told false information on other topics.

To repeat, do not listen to tax advice from anyone unless if the person actually prepares taxes. You can cost yourself a lot of money and aggravation. When in doubt, go to the IRS website.


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Tim Watson is a tax preparer during the season who also runs an SEO directory and an iPod directory. You may use this article as is provided the resource box stays intact.