Question

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?

Solutions

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.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Shane and Megan, a married couple, have combined wages of $47,000 and receive combined Social Security...
Shane and Megan, a married couple, have combined wages of $47,000 and receive combined Social Security benefits of $18,000. How much of their social security benefits is taxable? a.$16,200 b.$0 c.$18,000 d.$15,300
Sally and Francesca are a married (lesbian) couple. They would like to begin a family. Both...
Sally and Francesca are a married (lesbian) couple. They would like to begin a family. Both have blocked fallopian tubes and therefore cannot use artificial insemination. They have thought about adoption but would prefer to have a child who is related to them biologically. They have decided to avail themselves of in-vitro fertilization - with Sally being the donor and Francesca being the one who would carry the pregnancy to term. They have a friend who has agreed to be...
Sally and Francesca are a married (lesbian) couple. They would like to begin a family. Both...
Sally and Francesca are a married (lesbian) couple. They would like to begin a family. Both have blocked fallopian tubes and therefore cannot use artificial insemination. They have thought about adoption but would prefer to have a child who is related to them biologically. They have decided to avail themselves of in-vitro fertilization - with Sally being the donor and Francesca being the one who would carry the pregnancy to term. They have a friend who has agreed to be...
Scenario Mike and Sharon, a married couple from Texas, purchased a used cabinet at an auction...
Scenario Mike and Sharon, a married couple from Texas, purchased a used cabinet at an auction for $200. After getting home, they discovered $1,000 cash tucked in the cabinet. Being unable to determine who put the money there and after consulting the local authorities, Mike and Sharon kept the $1,000. Question: 1. What are as many possible tax research issues as can be determined in whether Mike and Sharon are liable for any tax on the money they found? 2....
In 2019, Lisa and Fred, a married couple, have taxable income of $300,000. If they were...
In 2019, Lisa and Fred, a married couple, have taxable income of $300,000. If they were to file separate tax returns, Lisa would have reported taxable income of $200,000 and Fred would have reported taxable income of $100,000. A- What is the couple’s marriage penalty or benefit? (Enter a penalty as a positive and a benefit as a negative) n 2019, Jasmine and Thomas, a married couple, have taxable income of $145,000. If they were to file separate tax returns,...
Bill and Janet are a married couple filing jointly in 2018 and have one child, Robert,...
Bill and Janet are a married couple filing jointly in 2018 and have one child, Robert, who is 9 years old. Robert has interest income of $3,000 in 2018. Bill and Janet’s taxable income in 2018 is $46,050 and they take the standard deduction as the only from AGI deduction. Click here to access the trust and estate tax rate schedule and the individual income tax schedules. Calculate Robert’s tax liability for 2018, assuming: a.  Bill and Janet do not make...
Bill and Janet are a married couple filing jointly in 2018 and have one child, Robert,...
Bill and Janet are a married couple filing jointly in 2018 and have one child, Robert, who is 9 years old. Robert has interest income of $3,000 in 2018. Bill and Janet’s taxable income in 2018 is $46,050 and they take the standard deduction as the only from AGI deduction. Click here to access the trust and estate tax rate schedule and the individual income tax schedules. Calculate Robert’s tax liability for 2018, assuming: a.  Bill and Janet do not make...
Ethical case seeking others perspective Sally and Francesca are a married (lesbian) couple. They would like...
Ethical case seeking others perspective Sally and Francesca are a married (lesbian) couple. They would like to begin a family. Both have blocked fallopian tubes and therefore cannot use artificial insemination. They have thought about adoption but would prefer to have a child who is related to them biologically. They have decided to avail themselves of in-vitro fertilization - with Sally being the donor and Francesca being the one who would carry the pregnancy to term. They have a friend...
Bill and Maria are a married couple who file a joint income tax return. They have...
Bill and Maria are a married couple who file a joint income tax return. They have two children, so they claim a total of 4 exemptions ($4,050 for each exemption). In addition, they have legitimate itemized deductions totaling $27,750. Their total income from wages is $200,800. Assume the following tax table is applicable: ​ Married Couples Filing Joint Returns ​ ​ If Your Taxable Income Is You Pay This Amount on the Base of the Bracket Plus This Percentage on...
Jack and Jill, married couple, have taxable income of $395,000. Jack owns 100% of a S...
Jack and Jill, married couple, have taxable income of $395,000. Jack owns 100% of a S Corporation, which runs a successful burger restaurant. The S Corp has the following activity.  How much is the IRC 199A deduction: Ordinary Income of $500,000 W-2 Wages paid of $120,000 Original cost of qualified property of $400,000
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT