I represent companies and individuals in St. Louis, surrounding areas and the State of Missouri. If you are on extension the time to file is getting closer and closer. If you are married you have two filing status choices. Married Filing Jointly and Married Filing Separately. Most married couples filing jointly because it is easlier and you are eligible for more tax deductions and credits eventhough the tax reform bill has changed some of that.
If either spouse owes back taxes regardless whether Federal or State or is behind on child support or those nagging student loans that seem to never go away the IRS can offset your joint tax refund to pay off your tax debt or other obligations. If you are aware of these issues filing seperatly might be the way to go. When filing Married Filing Jointly that means you incur "joint and several liabliltiy" There are some special rules that apply that you should know about.filing seperatly.
1.Tax rate generally higher than on a joint return.
2. You cant talk the credit for child and dependent care expenses is most cases/ However if you are legally seperated you still may be able to file the seprate return and still take the credit.
3. Your captial loss deduction limit is $1500.00 instead of $3000.00 on a joint return.
4. Most importantly it could be advantageous in your chances of winning an Offer in Compromise with the IRS.
If you have had the misfortune of having your refund taken by the IRS and it's not uncommon for this to happen when a joint return was filed with a current spouse or a former spouse there could be a soluton to your problem.
It's called Innocent Spouse Relief. Back in 1998 when the IRS was restructered there was an expansion of the IRS code that allows taxpayers relief to make a wrong right. What are they?
1. Innocent Spouse-IRC Section 6015(b)(1)
2 .Separation of Liability-IRC Section 6015(c)(1)
3.Equitable Relief-IRC Section 6015(f)
Depoending on the circumstances will determine the form of relief a taxpayer should pursue.
If you or someone you know is having IRS issues please feel free to contact me @636-397-2759 or by cell 636-866-4554 or email me@email@example.com.
Arch Tax Resolution
620 S. Benton
St. Charles, MO 63301