Question about filing taxes- married filing separately?
My husband and I have always filed married filing jointly. However, this year I am considering married filing separately. The reason is my student loans. I have high student loans my husband has none. I was told by my lender that if I file married filing separate I could use the the new income based repayment program that will greatly reduce my monthly student loans. The question is can my husband file as head of household even though we are married filing separately? I have two step-children who live with us. It is only right that he carries them because they are his biological kids. If he can’t file head of household what are the disadvantages for filing separately? Please answer only if you have knowledge about filing or preparing taxes and you can give some good insight. Thanks.
If you lived apart for all of the last six months of the year, then he might be able to file as head of household, but probably cannot. If you lived together for any part of the last six months of the year, then he definitely cannot file as head of household. It is illegal for a married person to file as head of household unless the person is “considered unmarried”, as defined below. The disadvantage of filing separately is that your taxes might be more (in other words, your refund might be less), but this is not always true. Fill out the forms both ways to be sure.
“To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. You are considered unmarried on the last day of the tax year if you meet all the following tests.
“You file a separate return (defined earlier under Joint Return After Separate Returns ).
“You paid more than half the cost of keeping up your home for the tax year.
“Your spouse did not live in your home during the last 6 months of the tax year. Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. See Temporary absences, later.
“Your home was the main home of your child, stepchild, or foster child for more than half the year. (See Home of qualifying person , later, for rules applying to a child’s birth, death, or temporary absence during the year.)
“You must be able to claim an exemption for the child. However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described later in Children of divorced or separated parents under Qualifying Child or in Support Test for Children of Divorced or Separated Parents under Qualifying Relative . The general rules for claiming an exemption for a dependent are explained later under Exemptions for Dependents .
“If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately ), special rules may apply in determining your income and expenses. See Publication 555 for more information.
“Nonresident alien spouse. You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. However, your spouse is not a qualifying person for head of household purposes. You must have another qualifying person and meet the other tests to be eligible to file as a head of household.
“Earned income credit. Even if you are considered unmarried for head of household purposes because you are married to a nonresident alien, you are still considered married for purposes of the earned income credit (unless you meet the five tests listed earlier under Considered Unmarried ).You are not entitled to the credit unless you file a joint return with your spouse and meet other qualifications.
” See Publication 596 for more information.
“Choice to treat spouse as resident. You are considered married if you choose to treat your spouse as a resident alien. See chapter 1 of Publication 519.
“Keeping Up a Home
“To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year.”
