Question:
If a husband or wife owes money that is subject to backup withholding, can the other file seperately and still get their tax refund? Also, would there be a penalty for doing that? For example not being able to claim children or daycare etc?
Answers:
You can file as married filing separately, but yes Virginia, the IRS does penalize you for filing as married filing separately, and here they are.
If you are married, then you and your spouse can file separate tax returns. The married filing separately (MFS) filing status is the least beneficial of all the filing statuses. That's because MFS taxpayers are not eligible to claim the following tax benefits:
Tuition and fees deduction
Student loan interest deduction
Tax-free exclusion of US bond interest
Tax-free exclusion of Social Security Benefits
Credit for the Elderly and Disabled
Child and Dependent Care Credit
Earned Income Credit
Hope or Lifetime Learning Educational Credits
MFS taxpayers also have lower income phase-out ranges for the IRA deduction.
Additionally, MFS taxpayers must both claim the standard deduction or must both itemize their deductions. In other words, one MFS taxpayer cannot claim the standard deduction if the other spouse is itemizing.
I have attached a link to the website that the above information came from.
I dont think so, try going to the irs site
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