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| If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived with for the greater number of nights during the rest of the year. A child is treated as living with a parent for a night if the child sleeps at a parent's home, with the parent either present or not present. Additionally, a child is treated as living with a parent for a night if the child sleeps in the company of the parent, when the child does not sleep at a parent's home. |
| Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. If you have a choice, you use the method that gives you the lower tax and higher deduction. Some persons are not eligible for the standard deduction. Your standard deduction is zero and you should itemize any deductions you have if your filing status is married filing separately, and your spouse itemizes deductions on his or her tax return. Also, your standard deduction is zero and you should itemize any deductions you have if you are filing a tax return for a short tax year because of a change in your annual accounting period. In addition, if you are a non-resident or dual-status alien during the year, you should itemize your deductions and your standard deduction is zero. |
| Thomas died May 6, 2014. Thomas was single and he would have turned 65 on December 20, 2014. His standard deduction for 2014 is $7,750 because had he not died he would have turned 65 towards the end of the year. |
| If your itemized deductions are less than the amount of your standard deduction, you can elect to itemize deductions on your federal tax return rather than take the standard deduction. Furthermore, you can itemize your deductions if the tax benefit of being able to itemize your deductions on your state tax return is greater than the tax benefit you lose on your federal tax return by not taking the standard deduction. At no time are you obligated to take the standard deduction. It is for the most part more beneficial to take advantage of the larger figure but not always as in the case with the state calculations. |
| Even if you do not otherwise have to file a tax return, you should file to get a refund of any tax withheld, to get the Earned Income Credit if you are eligible or if you are eligible for a refundable credit for prior year minimum tax. |
| In some cases, your combined income tax on separate tax returns may be less that it would be on a joint tax return. However, you should itemize deductions if your spouse itemizes deductions, and you are not allowed to claim the standard deduction. Also remember that you cannot exclude any interest income from qualified U.S. savings bonds that you used for higher education expenses when you file MFS. Also, when you file Married Filing Separately, more of your Social Security benefits you received during the year become taxable than if you filed a Married Filing Jointly tax return. |
| Copyright © 2014 [Hera's Income Tax School]. All Annual Filing Season Program rights reserved. |
| Revised: 12/14/14 |
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