Question

Mark and Barbara are married and want to file a joint return

Answer 1

Ans : * According to the IRS, "If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses."

If you're unsure what's best for your personal situation, experts recommend preparing your taxes both ways to determine which option makes the most financial sense for you. You might also want to keep a few rules in mind.

* When Can You File a Joint Return With Your Spouse?

You're eligible to file a joint tax return if you're considered legally married. This means that you were married on the last day of the tax year. Even if you filed for divorce during the year, the IRS still considers you married if you don't receive a divorce decree or judgment on or before December 31.

That's the basic rule. You can't be legally separated by court order, either, although it's not mandatory that you live together. You can simply live apart without having the court issue an order dictating the terms of your separation.

Both you and your spouse must also agree to file the joint return and you both must sign it.

* How Married Filing Jointly Impacts Your Tax Rate :

A person's filing status determines which standard deduction amount and which schedule of tax rates are used. These are the rates and brackets for the married filing joint status in the 2017 and 2018 tax years.

* The Risks of Filing a Joint Married Return :

Both spouses must report all their incomes, deductions, and credits on the same return when they file jointly. Both accept full responsibility for the accuracy and completeness of that information.

So what happens if there are errors? Each spouse is responsible for providing documentation to prove the accuracy of the tax return if it's audited by the IRS. In other words, each spouse is held jointly and severally liable for those mistakes. And if any tax that's due and owing is unpaid, each spouse is held personally responsible for the entire payment.

Here's what the IRS has to say about it: "Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. This means that if one spouse does not pay the tax due, the other may have to. Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse."

The IRS recognizes that not all marriages are perfect unions and will sometimes grant exceptions for joint liability through innocent spouse relief, separation of liability, or equitable relief, depending on the circumstances of the matter. But the rules are complicated so see a tax professional for help if you find yourself in this predicament.