Federal Income Tax, Married Filing Separately 2011, 2012

Your filing status is usually determined by whether or not you are married. If you are married then you have the option file a couple of different ways. You may either file your married tax return jointly, separately, or as head of household.

Married Filing Separately

According to the IRS you are married as long as it is a legal union according to the law. If you want to be responsible for your own tax return and you are married then you may choose to file separately.

You will be required to report your income, deductions, credits, and any exemptions. You may claim your spouse as an exemption if they did not have any income. To file separately you will need to use Form 1040 or 1040A. You will then enter your filing status on line 3.

Items to consider when filing separately:

• Your tax rate may be higher.

• Usually you will not be able to take the child care credit.

• You will not be eligible for the EEC (earned income credit) or for any education credits.

• Your capital loss deduction is reduced from $3,000.00 to $1,500.00.

• Your first time homebuyer credit is reduced from $7,500.00 to $3,750.00

• Your standard deduction is cut in half.

• You must itemize if your spouse itemizes.

• You will not be able to take a credit for adoptions.

• Your retirement contributions credit will be reduced.

Also if you have lived in the same home as your spouse at any point during the tax year and wish to file separately you will not be able to take the following credits either:

• Credit for the elderly or disabled.

• You will have to report income from social security benefits and railroad retirement benefits.

• It is very important to remember that if you have filed a joint return in the past that you cannot file separately the following year.

For more information on filing separately, visit TurboTax Online. TurboTax Online will help you decide if filing separately really is the best choice for you.