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Filing Status. Married, Single, and More. References. Pub 4012, Tab B Pub 4491, pg 25 Pub 17, Chapter 2 Resource Tool for Tax Counselors laminated tri-fold. Five Choices for Filing Status. Pub 4012 Tab B. Single Married filing jointly (MFJ) Married filing separately (MFS)

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Presentation Transcript
filing status

Filing Status

Married, Single, and More

Oregon Tri-Counties Training 2013

references
References
  • Pub 4012, Tab B
  • Pub 4491, pg 25
  • Pub 17, Chapter 2
  • Resource Tool for Tax Counselors laminated tri-fold

Oregon Tri-Counties Training 2013

five choices for filing status
Five Choices for Filing Status

Pub 4012 Tab B

  • Single
  • Married filing jointly (MFJ)
  • Married filing separately (MFS)
  • Head of household (HH)
  • Qualified widow(er) (QW)

Oregon Tri-Counties Training 2013

intake and interview sheet
Intake and Interview Sheet

Check Part II entries on Intake Form

Oregon Tri-Counties Training 2013

taxwise main information sheet
TaxWise – Main Information Sheet

Enter name and SSN only if child not also dependent

Oregon Tri-Counties Training 2013

form 1040
Form 1040

Oregon Tri-Counties Training 2013

filing status importance
Filing Status Importance
  • Many tax items affected by filing status
    • Necessity to file a return
    • Standard deduction
    • Eligibility for certain deductions or credits
    • Tax rate brackets

Oregon Tri-Counties Training 2013

filing status need to file a return
Filing Status – Need to File a Return?

Oregon Tri-Counties Training 2013

filing status standard deduction
Filing Status – Standard Deduction

Oregon Tri-Counties Training 2013

filing status tax rate
Filing Status – Tax Rate

Oregon Tri-Counties Training 2013

filing status1
Filing Status

Pub 17 Ch 2

  • Two criteria:
    • Marital status on last day of tax year
      • Federal definition – “married”
        • Legal marriage under laws of any state or country
        • Includes same sex spouses
        • Does not include civil unions or registered domestic partners
    • Type of dependents, if any

Oregon Tri-Counties Training 2013

living situation analysis
Living Situation Analysis
  • Marital status as of 12/31
  • Others living in home, if any
    • Their relationship/dependency
    • Who paid upkeep
  • If widow(er)
    • Date of death of spouse
    • Any dependents

Oregon Tri-Counties Training 2013

single
Single
  • Not married as of December 31st
  • Married, but legally separated
  • No related dependents

Oregon Tri-Counties Training 2013

married filing jointly
Married Filing Jointly
  • Married on last day of year
    • Includes common law marriage
    • Includes same-sex married couples
  • Spouse died during current year/not remarried
  • Generally most advantageous filing status

Oregon Tri-Counties Training 2013

married filing separately
Married Filing Separately
  • Taxpayer chooses to file MFS
  • Spouse has already filed MFS
  • Married but separated
  • In rare cases – more advantageous
    • Generally, no children in home

Oregon Tri-Counties Training 2013

mfs disadvantages
MFS Disadvantages
  • Highest tax rate/lower standard deduction
  • Cannot claim most tax credits
  • Cannot deduct student loan interest, tuition and fees adjustment, education credits
  • Capital loss limit $1,500 (not $3,000)‏
  • Most of Social Security benefits can become taxable

Oregon Tri-Counties Training 2013

head of household unmarried
Head of Household – Unmarried
  • Provided home for qualified child
    • Need not be dependent if divorced
  • Provided home for related dependent
  • Provided more than half the cost of maintaining home for dependent parents living elsewhere

Oregon Tri-Counties Training 2013

head of household married
Head of Household – Married
  • Lived apart all of last six months of year
  • Provided home for your child, stepchild, or eligible foster child for over six months
  • No other relatives qualify.
  • Only one Head of Household in a household

Oregon Tri-Counties Training 2013

head of household
Head of Household
  • Key advantages
    • Higher standard deduction than Single or MFS
    • Advantageous tax rate structure

Oregon Tri-Counties Training 2013

qualifying widow er
Qualifying Widow(er)
  • Spouse died in one of two past years
    • Has dependent child or stepchild
    • Grandchild not eligible
  • Maintained home for child
    • >50% of cost
  • Can file QW for two years only

Oregon Tri-Counties Training 2013

qualifying widow er1
Qualifying Widow(er)
  • Advantages
    • Standard Deduction – same as MFJ
    • Use MFJ Tax Rates

Oregon Tri-Counties Training 2013

problem 1
Problem #1
  • Mr Buck provides total support for his two children. His wife died in 2010, and he has not remarried.
  • What is the best filing status for Mr Buck?

Head of Household

  • What would have been best in TY2012?

Qualifying Widower

Oregon Tri-Counties Training 2013

problem 2
Problem #2
  • Ralph and Betty’s divorce became final during 2013. Betty has full custody of their two children and will claim them as her dependents. Ralph pays $500 per month child support.
  • What is Ralph’s Filing Status?

Single

  • What is Betty’s Filing Status?

Head of Household

Oregon Tri-Counties Training 2013

problem 3
Problem #3
  • Luke and Linda are still married, but chose to live apart for most of the year
  • Their two children lived with Linda all year
  • In July, Luke was out of a job so he moved back in the house for just that month
  • What filing status can they each choose?

MFJ or MFS (both must use same status)

Oregon Tri-Counties Training 2013

problem 4
Problem #4
  • Dick and Jane are married, lived apart all year and are filing separate returns
  • Their 23-year-old daughter Jody lived with Jane all year while attending school full-time
  • Jody earned $2,500 during the summer
  • What is Jane’s best filing status?

Head of Household

Oregon Tri-Counties Training 2013

filing status2
Filing Status

Questions?

Comments?

Oregon Tri-Counties Training 2013

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