Filing Single or MFS?

[Jimmy The Tulip 3]

My LPR spouse needs to file taxes for 2017 but we are unsure of whether she should file "single" or "married filing separatly". Her accountant and our lawyer both say to do it "single" as thats what their prior clients in our situation have done,  but online the advice is to file MFS.

 

We are applying via I-130 for spouse of LPR. Any advice?

 

 

[Our Journey 73]

If your are married, He have to file taxes married.

 

[Unlockable 7,315]

You are married. You are supposed to file as married. 

[Jimmy The Tulip 3]

29 minutes ago, Our Journey said:

If your are married, He have to file taxes married.

 

 

24 minutes ago, NuestraUnion said:

You are married. You are supposed to file as married. 

You guys have any idea if tax obligations will go up or down (as in pay more or less tax), moving from single to MFS? Generally speaking of course, i know there are a lot of exemptions/deductions to take into account.

Edited March 9, 2018 by Jimmy The Tulip

[Unlockable 7,315]

2 minutes ago, Jimmy The Tulip said:

 

You guys have any idea if tax obligations will go up or down (as in pay more or less tax), moving from single to MFS? Generally speaking of course, i know there are a lot of exemptions/deductions to take into account.

Depends on income. If you file married file jointly your income will be combined. But you may qualify for better tax breaks. If you file married filing separately then it will be based on each of your incomes.

 

But you do realize that the IRS can audit you at anytime in your life? So if you file single this year. Say, five years from now the IRS finds out you were supposed to file as married. If you were suppose to pay more because you were married instead of single, not only will you have to pay the difference, but you will also have penalties and interest that accumulated over the those years.

 

One thing about the IRS is they may be slow, but they have along memory.

[Jimmy The Tulip 3]

4 minutes ago, NuestraUnion said:

Depends on income. If you file married file jointly your income will be combined. But you may qualify for better tax breaks. If you file married filing separately then it will be based on each of your incomes.

 

But you do realize that the IRS can audit you at anytime in your life? So if you file single this year. Say, five years from now the IRS finds out you were supposed to file as married. If you were suppose to pay more because you were married instead of single, not only will you have to pay the difference, but you will also have penalties and interest that accumulated over the those years.

 

One thing about the IRS is they may be slow, but they have along memory.

LPR is not or has ever filed MFJ, so forget about that. For her married years, she erroneously filed Single. So the question is Single vs MFS and what carries a bigger tax obligation, generally speaking.

 

We will be amending our returns to change to MFS to avoid future audits, but since shes already paid her tax obligation for 2016 and 2017, I am wondering if the change from Single to MFS will require additional money to be paid in the form of taxes.

Edited March 9, 2018 by Jimmy The Tulip

[Villanelle 4,122]

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

 

Youd have to check the tax tables. MFS is often the same tax liability as Single.

[arken 4,197]

The tax liability may go up or down by a slight margin from single to MFS.

 

Even if it goes up by a little for now by changing to MFS, she can amend the latest 3 married years tax return again from MFS to MFJ once you join her in the US and get whole lot of refund back, provided you don’t have worldwide income.

 

So go for MFS without hesitating if she doesn’t wanna do MFJ by applying for ITIN for you.

[Jimmy The Tulip 3]

10 minutes ago, Damara said:

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

 

Youd have to check the tax tables. MFS is often the same tax liability as Single.

Thank you, this is what I was looking for.

 

 

4 minutes ago, arken said:

Even if it goes up by a little for now by changing to MFS, she can amend the latest 3 married years tax return again from MFS to MFJ once you join her in the US and get whole lot of refund back, provided you don’t have worldwide income.

Really? Unfortunately I do have worldwide income for the years she will be filing MFS though I am working in a different country while waiting our Visa approval.

Edited March 9, 2018 by Jimmy The Tulip

[Crazy Cat 42,032]

There are several options when a person is married...but "Single" is not one of them if you were married as of Dec 31st of a tax year.

[Crazy Cat 42,032]

40 minutes ago, Jimmy The Tulip said:

LPR is not or has ever filed MFJ, so forget about that. For her married years, she erroneously filed Single. So the question is Single vs MFS and what carries a bigger tax obligation, generally speaking.

 

We will be amending our returns to change to MFS to avoid future audits, but since shes already paid her tax obligation for 2016 and 2017, I am wondering if the change from Single to MFS will require additional money to be paid in the form of taxes.

It depends on several factors, but the friendly IRS will certainly let you know if your amended tax liability is greater than before you amended.

[Italian_in_NYC 259]

1 hour ago, Damara said:

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

 

Youd have to check the tax tables. MFS is often the same tax liability as Single.

Only at the lower brackets.

[geowrian 22,338]

Her accountant and lawyer told a married individual to file as "single"? Wow...no, single is never a valid option for anybody married. The options are MFS, MFH, or sometimes HOH (with dependent(s)).

[mcdull 474]

I cannot believe people are really asking this question. 

[Scandi 4,176]

3 hours ago, mcdull said:

I cannot believe people are really asking this question. 

I know right? "Uhm, I'm married, but can I pretend I'm not when filing my taxes?", what the heck...?