For example, if one spouse has a lot of medical expenses, such as COBRA payments resulting from a job loss, computing taxes individually might allow for a larger deduction. Married Filing Separately status often requires more effort, but the time you invest can offer tax savings - under the right conditions. While approximately 96% of married couples file jointly each year, a joint return is not always the most beneficial option. One of the first decisions you make when completing your tax return - choosing a filing status - can affect your refund's size, especially if you're married. These strategies go beyond the obvious to give you tried-and-true ways to reduce your tax liability. While Americans may disagree on how the government spends their taxes, at tax time, many of us are looking for ways to pay no more than we owe - or even boost our tax refunds. Families with low-to-moderate incomes may qualify for an Earned Income Tax Credit worth up to $6,935 (tax year 2022), which is paid as a refund if you don’t owe any tax.Commonly overlooked deductions include those for state and local sales taxes, state income taxes, out-of-pocket charitable contributions (including mileage), and student loan interest.Filing as Head of Household can result in a higher Standard Deduction and more favorable tax brackets than filing as Single, if you qualify.Filing separately may also make one spouse eligible for a larger Child Tax Credit. Married Filing Separately can offer tax savings under certain conditions, including when one spouse has a large amount of deductible medical expenses.Subscribe: Apple Podcasts | Spotify | iHeartRadio
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