Description
“Married filing separately” is frequently overlooked as a tax filing status due to the rule of thumb that filing jointly tends to result in a lower tax liability. But filing separately unlocks numerous financial planning opportunities (and sometimes significant tax savings!) which are frequently overlooked by clients’ tax preparers. This session will explore the benefits and limitations of filing separately for married couples in order to provide a better framework for advisors to assist their clients and their tax preparers with this critical decision.
Learning Objectives
1.) Identify client profiles where filing separately maximizes savings, such as for those with income-driven student loan repayment, state marriage penalties, or income tax credit arbitrage.
2.) Understand the impact of Married Filing Separately status on Medicare premiums, tax credits, deductions, and considerations for community property states.
3.) Collaborate with tax preparers to analyze filing status and identify opportunities for amending past returns.