1.2 FILING STATUS
The standard deduction amount and applicable tax rates vary with filing status.
Married Filing a Joint Return
1. Taxpayers can choose married filing jointly as their filing status if they are
considered married and both spouses agree to file a joint return. On a joint return,
both spouses report combined income and deduct combined allowable expenses.
Taxpayers can file a joint return even if one of the spouses had no income or
deductions.
a. Two individuals are treated as legally married for the entire tax year if, on the
last day of the tax year, they are
1. Legally married and cohabiting as spouses
2. Legally married and living apart but not separated pursuant to a valid
divorce decree or separate maintenance agreement
3. Separated under a valid divorce decree that is not yet final
NOTE: If a spouse dies, status for each spouse is determined when the spouse dies, unless
the surviving spouse remarries before the end of the tax year (in which case the decedent
f
iles married filing separate).
b. A joint return is not allowed if one spouse was a nonresident alien (NRA) at
any time during the tax year, unless the U.S. citizen and the NRA spouse so
elect and agree to be taxed on their worldwide income.
c. Generally, if one spouse files separately, so must the other. An exception to
this is if the other spouse qualifies for head of household while married. Then
one spouse may file separately and the other may file as head of household.
d. Once a joint return has been filed for the year and the time for filing the return
of either spouse has expired, the spouses may not amend the return to file
separate returns.
e. Married individuals who file separate returns may later file a joint (amended)
return. Payment of the entire joint tax liability is not required at the time the
amended return is filed.
f.
If an individual obtains a marriage annulment (no valid marriage ever
existed), the individuals must file amended returns claiming a filing status of
single or head of household, whichever applies.
1. All prior tax years not closed by the statute of limitations must be
amended.
g. A joint return is signed by both spouses. Generally, the spouses are jointly
and severally liable for the tax due and any interest and penalties.
1. One spouse may be relieved of joint and several liability under the
“innocent spouse” provisions in very limited circumstances.
h. Married individuals who file a joint return account for their items of income,
deduction, and credit in the aggregate.
1. A joint return is allowed when spouses use different accounting
methods.
2. Spouses with different tax years may not file a joint return.
i.
j.
Same-Sex Spouses
1. Same-sex couples qualify for married filing status. This only applies to
married individuals, not to those in domestic partnerships or civil
unions.
Injured Spouse Relief
1. When a joint return is filed and only one spouse owes a past-due
amount, the other spouse can be considered an injured spouse.
a. Refunds on a joint tax return may be applied to past-due debts
such as
i.
ii.
iii.
iv.
Past-due child support
Debts to federal agencies
State income tax obligations
State unemployment compensation debts
b. An injured spouse can get a refund for the injured spouse’s
share of the joint overpayment that would otherwise be used to
pay the past-due amount.
2. To be considered an injured spouse, the taxpayer must
a. File a joint return,
b. Have reported income (such as wages, interest, etc.),
c. Have made and reported tax payments (such as federal
income tax withheld from wages or estimated tax payments) or
claimed the Earned Income Credit or other refundable credit,
d. Not be required to pay a past-due amount, and
e. File Form 8379 within 3 years from the due date of the return or
2 years from the date the tax was paid, whichever is later. If a
return was not filed, the form must be filed within 2 years of the
date the tax was paid.
i.
ii.
A new Form 8379 must be filed for each year a reclaim
of a refund is requested.
Form 8379 can be filed electronically or by mail to the
IRS Service Center where the original return was filed.
k. Innocent Spouse Relief
1. Generally, both spouses are responsible for paying the full amount of
the tax, interest, and penalties due on a joint return. However, if
qualified for innocent spouse relief, a taxpayer may be relieved of part
or all of the joint liability.
2. Qualifying events include
a. An understatement of tax because the spouse omitted income
or claimed false deductions or credits, and the innocent
spouse was not aware of the understatement;
b. An understatement of tax, and the innocent spouse is divorced
or otherwise no longer living with the spouse; or
c. Given all the facts and circumstances, it is not fair to hold the
innocent spouse liable for the tax.
3. Innocent spouse relief is only for taxes due on the spouse’s income
from employment or self-employment.
a. An innocent spouse cannot claim relief for taxes due on
i.
ii.
Innocent spouse’s own income
Household employment taxes
iii.
Individual shared responsibility payments
iv.
v.
Business taxes
Trust fund recovery penalties for employment taxes
4. Knowledge of Errors
a. Innocent spouse relief cannot be claimed for understated
taxes if
i.
ii.
The innocent spouse had actual knowledge of the errors
on the return
A reasonable person in similar circumstances would
have known about the errors
b. Actual knowledge exists if the innocent spouse
i.
ii.
iii.
Knew that the spouse received unreported income
Knew of facts that made a deduction or credit
unallowable
Knew that the spouse deducted false or inflated
expenses
5. Exception for Victims of Domestic Abuse
a. Eligibility for relief is available even if the innocent spouse
knew about errors if the innocent spouse
i.
Was the victim of spousal abuse or domestic violence
before signing the return
ii.
iii.
Did not challenge the items on the return because of
fear
Signed the joint return because the innocent spouse
was pressured or threatened
6. Related types of relief include separation of liability relief, equitable
relief, and relief from liability arising from community property law.
7. To request relief, file Form 8857, Request for Innocent Spouse Relief.
a. Innocent spouse relief must be requested within 2 years of
receiving an IRS notice of an audit or taxes due because of an
error on the return.
Married Filing Separate Returns
2. Each spouse accounts separately for items of income, deduction, and credit. A
spouse who uses his or her own funds to pay expenses of jointly owned property is
entitled to any deduction attributable to the payments.
Qualifying Surviving Spouse
3. This status is available for 2 years following the year of death of a spouse and may
be elected if
a. The surviving spouse did not remarry during the tax year.
b. The surviving spouse qualified (with the deceased spouse) for married filing
joint return status for the tax year of the death of the spouse.
c. The surviving spouse maintained a household for the taxable year.
Household maintenance means the spouse furnishes more than 50% of the
costs to maintain the household for the tax year.
1. The household must be the principal place of abode of a qualifying
dependent of the surviving spouse.
2. The dependent must be a son or daughter, a stepson or stepdaughter,
or an adopted child. This does not include a foster child. (This is an
exception to the general dependent rules covered in Subunit 1.4.)
NOTE: An adopted child is always treated as the taxpayer’s own child; i.e., the term “child”
includes “adopted child.”
d. The surviving spouse can file a joint return in the tax year of the death of the
spouse.
1. The surviving spouse must not have remarried prior to the end of the
year.
Head of Household
4. An individual qualifies for head of household status if (s)he satisfies conditions with
respect to filing status, marital status, and household maintenance.
a. Filing status. The individual may not file as a surviving spouse.
b. Marital status. Generally, the taxpayer must be unmarried on the last day of
the year. A married person may qualify for head of household status if the
conditions in item d. below are satisfied, i.e., considered unmarried. An
individual is not treated as married for head of household status if the
spouse is a nonresident alien at any time during the tax year.
Household Maintenance
c. An individual must maintain a household that is the principal place of abode
for a qualifying individual.
1. To maintain a household for federal filing status purposes, an
individual must furnish more than 50% of the costs, of mutual benefit,
of maintaining the household during the tax year.
Qualifying
Expenditures
Nonqualifying Costs
Property tax
Clothing
Mortgage interest
Education
Rent
Medical treatment
Utilities
Life insurance
Upkeep
Transportation
Repair
Vacations
Property insurance
Services by the taxpayer
Food consumed in-home Services by the
dependent
2. Qualifying Person and Time
3. The taxpayer must maintain a household that constitutes the
principal place of abode for more than half of the taxable year for at
least one qualified individual who is
a. A qualifying child or
b. A qualifying relative. (Both of these are defined in Subunit 1.4.)
4. Note that there are two special rules concerning a qualifying person:
a. First, the taxpayer with a dependent parent qualifies even if the
parent does not live with the taxpayer.
b. Second, if a qualifying child lives with the taxpayer, the
qualifying child need not be the taxpayer’s dependent. For
example, if all regular requirements are met but the custodial
parent releases claim to the child as his or her dependent to
the noncustodial parent per Form 8332.
Otherwise, the IRS maintains that the qualifying individual must occupy the same
household (except for temporary absences).
5. The following table is an additional guide for qualifying children and
relatives:
IF the person is a . . .
AND . . .
THEN that
person is . . .
qualifying child (such
as a son, daughter, or
grandchild who lived
with the taxpayer more
than half the year and
meets certain other
tests)
(s)he is single
a qualifying
person, whether
or not the
taxpayer can
claim the person
as a dependent.
(s)he is married and the taxpayer can
claim him or her as a dependent
a qualifying
person.
(s)he is married and the taxpayer cannot
claim him or her as a dependent
not a qualifying
person.
qualifying relative who
is the taxpayer’s father
or mother
the taxpayer can claim him or her as a
dependent
a qualifying
person.
the taxpayer cannot claim him or her as a
dependent
not a qualifying
person.
qualifying relative other
than the taxpayer’s
father or mother (such
as a grandparent,
(s)he lived with the taxpayer more than
half the year, and (s)he is related to the
taxpayer in one of the ways listed under
immediate relationships
a qualifying
person.
brother, or sister who
meets certain tests)
in Subunit 1.4, and the taxpayer can claim
him or her as a dependent
(s)he did not live with the taxpayer more
than half the year
not a qualifying
person.
(s)he is not related to the taxpayer in one
of the ways listed under immediate
relationships in Subunit 1.4 and is the
taxpayer’s qualifying relative only because
(s)he lived with the taxpayer all year as a
member of the taxpayer’s household
the taxpayer cannot claim him or her as a
dependent
not a qualifying
person.
not a qualifying
person.
d. A married individual who lives with a dependent apart from the spouse will
be considered unmarried and qualify for head of household status if, for the
tax year,
1. The individual files separately;
2. The individual pays more than 50% toward maintaining the
household;
3. The spouse is not a member of the household for the last 6 months;
4. The household is the principal home of the individual’s child,
stepchild, or qualified foster child for more than half the year; and
5. The individual can claim the child as a dependent.
EXAMPLE 1-3
Head of Household Filing Status
Hector and Maria are married with one child. Hector moves out of the residence in
May. They are not divorced by the end of the year. Maria maintains the household for
the remainder of the year and claims the child on her individual tax return. Maria
may claim head of household status. Hector would then be required to file as
married filing separately.
5. Single
6. An individual must file as an unmarried individual if (s)he neither is married nor
qualifies for surviving spouse or head of household status.
EXAMPLE 1-4 Filing Status — Year of Separation
George and Rebecca married 5 years ago. At the end of the current year, they were
legally separated under a final decree of separate maintenance. They are
considered unmarried for the year and, if neither has a qualified dependent, they
will each file as single individuals.