Married couples will normally file jointly.Identify a situation where a married couple may prefer to file separately.
A)The spouse with lower income has substantial medical expenses.
B)A couple is separated and contemplating divorce.
C)One spouse can be held responsible for the entire tax liability.
D)All of the above

Question

Quizplus · Accepted Answer

A) If the spouse with lower income has substantial medical expenses, they may choose to file separately to take advantage of the lower income threshold for deducting these expenses as itemized deductions.
B) If a couple is separated and contemplating divorce, they may choose to file separately to keep their financial affairs separate.
C) If one spouse can be held responsible for the entire tax liability (e.g. if one spouse has undisclosed income or engages in tax fraud), the other spouse may choose to file separately to protect themselves from liability.

Married Couples Will Normally File Jointly