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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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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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