Video instructions and help with filling out and completing Fill Form 843 Dependents

Instructions and Help about Fill Form 843 Dependents

A taxpayer who would otherwise qualified for married filing joint can file as married filing separate the requirements for married filing joint and married filing separate the same taxpayer has to be legally considered married out of the last date of tax year however the the difference is that the taxpayers decide to file separately and rather than jointly because on a married filing joint return you need both spouses to consent and to decide to include all their income and expenses and file one return the difference in married filing separate is the spice is decided to file separate return so if both spouses want to file a joint return would you ever pick married filing separate generally no I I don't see a scenario why because if both wanted to file as a joint return they both consent it's probably going to be more beneficial to do joint return rather than separate return however a married filing separate return is generally done in a case where one spouse does not want to you know file the tax return with the other or does not consent and we are gonna look at why they might they might do that the married filing separate filing status generally has the worst tax consequences for the taxpayer because they will lose certain credits and the tax rates will be higher especially you know if you compare it to married filing joint so let's look at why a married person might want to file separate instead of joint the first reason is the tax liability to the other spouse and I have an example here Alice and Daniel are married Alice paid enough withholding tax during the year through withholdings at her job whereas Danielle who is self-employed made no tax payments at all so on a married filing joint return of total tax liabilities the responsibility to taxpayers on the return who happened to be Alice and Daniel so in this case Alice may want to file separate because she does not want to be responsible for Danielle's tax liability which could be significant yeah so in a case like this it would make sense for Alice to file you know a separate return and if she decides to file a separate return Daniel has no choice but to also file a separate return another reason is the spouse does not want to file a return or once the misreport so let's take the same example is above now but let's assume that Daniel doesn't want to file a tax return at all because he doesn't want to paying taxes now Alice who was a law-abiding citizen wants to file a tax return but she cannot file a married filing joint return because Daniel doesn't want to so remember again to file a joint return you need consent of both the spouses in this case Daniel says you know what I'm not even gonna paying taxes I'm not even gonna file a tax return the Iris's won't even know I have you know any income because I'm self-employed that's what he's assuming Alice on the other hand you know wants to you know follow the law and she wants to file a tax return so she only has one option which is to file married filing separate in this case because she can't get you know Daniel to file in tax return with her now on the other hand let's say Daniel decides you know what let's file the tax return together Alice you and I but I'm gonna report zero dollars on on my tax you know in our tax return as my income let's only report your income that you've already paid taxes on in other words he wants to file a fraudulent return and Alice again being a law-abiding citizen does not want to do that so here's another reason where even though Daniel may want to file a joint return Alice should not or probably would not want to file a return you know as a joint return with Daniel because she does not want to be involved in a fraudulent actor turn because if this gets audited and it comes back the liability is going to belong both to Daniel and Alice now there are certain exceptions we're not gonna go into that you know this called something called the spousal relief but don't worry about that right now but just know that there are plenty of reasons where a taxpayer may decide to file married filing separate despite having you know worse tax consequence