The IRS determined that the taxpayer's filing status was "married filing separately
" and that he was not entitled to the earned income credit for two dependent children.
The credit is not available to taxpayers whose filing status is married filing separately
Taxpayers that itemize deductions and file as head of household or married filing separately
are most susceptible to the AMT system.
* The AGI shown on the current year's return exceeds $75,000 ($37,500 if married filing separately
In addition, if the spouse who files as married filing separately
elects to itemize deductions, may the spouse who files as head of household claim the standard deduction for head of household status?
If the parties are not legally separated and have not lived together during the last six months of the year, the taxpayer not filing as head of household will file as married filing separately
Regardless of the eligible individual's filing status (except for married filing separately
), a married qualifying child must be the taxpayer's dependent or be exempted under the rules for children of divorced or separated parents.
If there is only one child, then the parent with whom the child lived for more than 6 months may file as head-of-household, and the other one is stuck with filing as married filing separately
Filing individual taxpayers as married filing separately
A failed conversion also occurs when the taxpayer files as married filing separately
in the conversion year.
6013(a) to file married filing separately
; thus, T may exclude $250,000 of the gain from income and must pay tax on $50,000 of gain.
If your losses exceed your gains, you may be able to deduct the difference on your tax return, up to $3,000 per year ($1,500 for those married filing separately