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| Tax School Homepage |
| If you live apart from your spouse and meet certain tests, you may be able to file as head of household, even if you are not divorced or legally separated. One of the requirements to file as Head of Household, you must not have lived with your spouse for the last six months of the year. Very important to know is that if you are married, you can use any filing status except single. If your taxable income is more than $100,000 you cannot use form 1040EZ or Form 1040A. You are generally stuck and must use Form 1040. |
| On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. You can file a joint return even if one of you had no income or deductions. In order to file jointly, you and your spouse must agree to file jointly. You must both sign the tax forms. Filing jointly with your spouse allows you many benefits which includes a lower tax than your combined tax for the other filing statuses. Filing jointly also allows you a higher standard deduction amount. Filing jointly gives you an advantage and access to certain tax benefits that do not apply to other filing statuses. If you and your spouse each have income, you may want to figure your tax both on a joint return and on a separate return and choose the one that gives you and your spouse the lower combined tax. If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly or separately as your filing status. |
| If you choose married filing separately as your filing status special rules apply such as you cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500. Also, if you choose married filing separate as your filing status you will not be allowed to claim the Earned income Credit, the American Opportunity credit, Lifetime Learning Credit or the deduction for student loan interest or tuition and fees deduction. |
| If you choose married filing separately as your filing status, and you lived with your spouse at any time during the tax year, You cannot claim the credit for the elderly or the disabled and more of your social security or equivalent retirement benefits you receive may be taxable. |
| Taxpayer Identification Numbers |
| The Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. Such as the Social Security Number "SSN", the Employer Identification Number. and the Individual Taxpayer identification Number "ITIN". These numbers are what identify you and your dependents and your business on your tax return. |
| A TIN must be furnished on returns, statements, and other tax related documents. This number must be furnished when filing your returns or when claiming tax treaty benefits. Also a TIN must be on a withholding certificate if the beneficial owner is claiming tax treaty benefits other than from income from marketable securities. This number must also be on a withholding certificate if the beneficial owner is claiming exemption for effectively connected income or exemption for certain annuities. Furthermore, you generally must list on your individual income tax return the social security number (SSN) of any person for whom you claim an exemption. If your dependent or spouse is not eligible to get a SSN, you must list an ITIN instead. |
| You should apply for a SSN by completing Form SS-5, Application for a Social Security Card, and also submit evidence of identity, age and citizenship or lawful alien status. |
| An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to report estate and trust income on Form 1041 and also to identify a business entity. Most businesses have this number and they usually must have it in order to open a bank account unless they want to be forced to use their personal name as the business name. |
| The ITIN is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN) that begins with the number 9 in the SSN format. To obtain the ITIN, you must complete Form W-7. In addition, you must substantiate your foreign or alien status and true identity by mail. Alternatively, you can substantiate foreign or alien status and true identity by going through an Acceptance Agent authorized by the IRS. If you need to apply for a number, you can visit Acceptance Agents which are entities (colleges, financial institutions, accounting firms, etc.) who are authorized by the IRS to assist applicants in obtaining ITINs. An ITIN, or Individual Taxpayer Identification Number is a 9-digit number, beginning with the number 9 and formatted like an SSN. It is important that you be aware that you cannot claim the earned income credit using an ITIN. |
| Foreign persons who are individual should apply for a social security number (SSN, if permitted) on Form SS-5 with the Social Security Administration or get an get an ITIN. Each ITIN applicant must now apply using the revised Form W-7 and must attach a federal income tax return to the Form W-7. There is an identifying for almost any situation. For example, you must apply for an ATIN which is a temporary nine-digit number issued by the IRS to individuals who are in the process of legally adopting a U.S. citizen or resident child but who cannot get an SSN for that child in to file their tax return. |
| Copyright © 2014 [Hera's Income Tax School]. All Annual Filing Season Program rights reserved. |
| Revised: 12/14/14 |
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