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In: Accounting

Sally and Mike are a married couple. Their combined income for 2018 is $48,324. They have...

Sally and Mike are a married couple. Their combined income for 2018 is $48,324. They have a son, Mike Jr., aged 9, and a daughter, Tina-Marie, aged 6. Both children attend after-school care at the cost of $1,800 per year. Seven months ago, Sally and Mike had a huge fight and Mike moved into the guest bedroom. The couple barely speak and keep different hours. Sally told her best friend that it’s as if Mike is not even there and she has decided to get a divorce. She also noted that Mike does not help out with the kids.

Discuss the following: Discuss Sally and Mike’s filing requirements and filing status. Is “considered unmarried” an option? Why or why not?

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Expert Solution

Answer:-

Sally and Mike can file as “married filing jointly” or “married filing separately”. Though they live apart, they are still married and not legally separated & they have kids legally.  Mike lived with a spouse at any time during the tax year. Married filing jointly is possible only when they both agree to do so. If they decide not to file jointly, they are left with the option of “married filing separately” status.

Both are legally married. both are considered to have been married for the full year and must file as either Married Filing Jointly or Married Filing Separately. The Married Filing Jointly status to include all you and your spouse's income, exemptions, deductions, and credits on one tax return.


No, “considered unmarried’ is not an option because they both are married living apart but not legally separated. For “considered unmarried,” they should have been legally divorced by the last day of the tax year.


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