Cecily Zamora
If you're married, you're generally required to file taxes jointly or separately, depending on your preference. However, there are exceptions to this rule. For instance, if you're legally separated or divorced, you may be able to file as a single taxpayer. In the US, your filing status depends on your marital status on the last day of the tax year. In Canada, if you've been living separate and apart from your common-law partner for at least 90 days, you must change your marital status to separated.
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What You'll Learn
Common-law marriage and common-law partners
In general, you cannot file as single if you are married. However, there are some exceptions to this rule, including if you are a widow(er), legally separated from your spouse, or if you are divorced.
Now, when it comes to common-law marriage and common-law partners, there are a few things to note. Firstly, common-law marriage, also known as non-ceremonial marriage, informal marriage, or marriage by habit and repute, is a marriage that occurs outside of a statutorily defined process. In other words, it is a marriage that takes legal effect without the need for a marriage license or a marriage ceremony. Instead, it is based on the agreement between the couple to consider themselves married, followed by cohabitation. It is important to note that not all jurisdictions permit common-law marriage, but those that do not will typically respect the validity of such marriages lawfully entered into in other states or countries.
To be considered a common-law marriage, a couple generally needs to satisfy certain requirements. These include being eligible to be married and cohabiting in a place that recognizes common-law marriage, intending to be married, and holding themselves out in public as a married couple. This can include referring to each other as "partner," "spouse," taking the same last name, or presenting themselves as a couple to friends, family, and the public. Same-sex couples can also be considered common-law married, as the requirements do not specify any particular gender.
In terms of common-law partners, this term often refers to couples who live together without being legally married. Common-law partners may be eligible for various government spousal benefits, and the term "common-law status" can automatically take effect when two people have lived together in a conjugal relationship for a minimum period, as defined by the relevant jurisdiction. For example, Citizenship and Immigration Canada defines a common-law partner as someone who has lived in a conjugal relationship with another person (of any sex) for at least one year.
So, to answer the question, if you are considered to be in a common-law marriage, you would not be able to file as single, as you would be legally recognized as married. However, it is important to note that the recognition of common-law marriage and the specific requirements vary depending on the jurisdiction, so it is always best to consult with a legal professional to understand your specific situation.
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Filing jointly or separately
If you are married, you cannot file taxes as a single person. The only exceptions to this rule are if you are a widow or widower, legally separated, or divorced. However, if you are in a common-law marriage in a state that recognizes common-law marriages for tax purposes, such as Texas, you can file as married.
When deciding whether to file jointly or separately, it is important to consider the potential tax implications for each filing status. Filing jointly with your spouse typically results in a larger standard deduction, reducing your taxable income. For example, for the 2024 tax year, most couples under 65 can expect a standard deduction of $29,200 when filing jointly, increasing to $30,000 in 2025. On the other hand, filing separately may be advantageous if you have significant medical expenses, as it could help you qualify for medical deductions if you only claim one income. Additionally, if only one spouse has taxable income, filing separately may result in a lower tax bill.
To determine the best course of action, it is recommended to prepare your tax return both ways and compare the net refund or balance due from each method. Online tax tools and calculators can assist in determining the most financially beneficial approach for your specific situation.
It is important to note that if you file separately but wish to change your filing status to married filing jointly, you can do so. However, the reverse is not true; once you have filed as married, you cannot change your filing status to single.
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Single filing status
The single filing status is reserved for those who are not married or are legally separated according to state law. This means that if you are married, you cannot file taxes as a single person. However, there are some exceptions to this rule. If you are a widow or widower, or if you are legally separated from your spouse, or if there has been a divorce, you may be able to file as a single person. It is important to note that legal separation requires a court order and allows both parties to remain married while living separately and managing their finances, assets, and child custody independently.
When it comes to filing taxes, married couples have two main options: married filing jointly and married filing separately. In most cases, filing jointly is more advantageous as it often results in a lower tax bill and simpler filing process. It also allows couples to benefit from double the standard deductions, potentially reducing their taxable income. Additionally, filing jointly can provide more opportunities for tax breaks, such as IRA contributions and education credits.
On the other hand, filing separately may be preferred in certain situations. For example, if both spouses have similar incomes, filing separately can prevent their combined income from pushing them into a higher tax bracket. Separately filing can also be beneficial if one or both spouses have deductions based on Adjusted Gross Income (AGI) or income-based student loans. By filing separately, they may be able to reduce their loan payments based on their individual income. However, it is important to consider the potential drawbacks, such as losing out on certain tax credits and deductions available only to married couples filing jointly.
Ultimately, the decision to file jointly or separately depends on each couple's unique circumstances and financial goals. It is recommended to prepare tax returns both ways, carefully reviewing the calculations and considering the net refund or balance due for each method. By understanding the implications of each filing status, married couples can make an informed decision that aligns with their financial situation and goals.
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Tax deductions and credits
In the United States, the Internal Revenue Service (IRS) considers you married for filing purposes until you get a final decree of divorce or separate maintenance. The IRS's Single filing status is reserved for those who are not married or are legally separated according to state law.
If you are in a legally recognised common-law marriage, you can choose a married filing status. However, if you are married, you cannot file as Single. Instead, you must choose between the Married Filing Jointly or Married Filing Separately statuses.
Married Filing Jointly
When filing jointly, you report your combined income and deduct your combined allowable expenses. For many couples, filing jointly lowers their taxes. In some cases, you may be relieved from liability for taxes owed on a joint return through tax relief for spouses. Filing jointly typically nets you a bigger standard deduction, reducing your taxable income. For example, $29,200 for most couples under age 65 in 2024, increasing to $30,000 in 2025. Filing together usually means you can earn more and still qualify for certain tax breaks, like IRA contributions and education credits.
Married Filing Separately
When filing separately, you report only your own income, deductions, and credits on your individual return. If you file separately but want to change your filing status to Married Filing Jointly, you can do that. However, filing separately might also exclude you from eligibility for certain tax deductions and credits. For example, the Child Tax Credit is usually reduced because the thresholds are lower for MFS. Additionally, you may lose potential tax breaks, credits, and deductions such as the Child and Dependent Care Expenses Credit, education tax credits, and student loan interest.
Head of Household
If you are married or legally separated, you may be eligible to file as Head of Household if certain requirements are met. For example, your spouse didn't live in your home for the last 6 months of the year, and you paid more than half the cost of keeping up your home for the year.
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Community property states
In the United States, property distribution during divorce is governed by one of two systems: community property or common law property. The community property system treats assets acquired during a marriage as jointly owned by both partners, while the common law property system states that property acquired by one member of a married couple belongs solely to that person unless the property is in both spouses' names.
Nine states are community property states, where marital property acquired during the marriage is owned by both spouses equally. These states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska, South Dakota, and Tennessee are "opt-in" community property states, allowing such a division of property if both parties agree.
In community property states, marital property includes earnings, all property bought with those earnings, and debts accrued during the marriage. This includes real estate, cars, boats, furniture, artwork, bank accounts, pensions, securities, and retirement accounts. Intangible assets, such as brand names, patents, trademarks, leases, and computer programs, are also subject to community property rules.
The distinction between common law and community property law is important in cases of divorce and wealth management. In a divorce in a community property state, the distribution of assets includes the family home, bank accounts, retirement accounts, and even business ventures. Debts accumulated during the marriage, such as mortgages and credit card bills, are also divided equally between the spouses.
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