A recent TC Summary Opinion is a reminder of a few things:
- Even figuring out filing status can be difficult.
- Spouses should be careful of one spouse filing electronically and telling his/her spouse after the fact.
- When a married couple file separately (rather than jointly), they lose some tax benefits, such as the Earned Income Tax Credit. If they are contemplating divorce though, separate filing might be a good idea to avoid joint liability. Note that in California, if they are a very high income couple (over $1 million), filing separately might reduce an extra tax applicable in California. (If you have that much income, find a preparer knowledgeable about taxes for individuals such as yourself.)
What do you think?