QUESTION DETAIL
Related User
Votes
Should a married couple file separated when one has a full time job plus a business?
ANSWER
Expert Michael Lim's Answer:
No, there is no requirement that a married couple file separate if one spouse has a full time job, plus a side business.
The choice in filing status for a married couple (Married Filing Joint vs. Married Filing Separate) should be made because the tax impact of the filing status will result in a better situation than the other one. Usually this occurs when one person makes significantly more than the other spouse.
In most cases, the MFJ status will usually yield a better result (less taxes owed).
Another reason for filing separately would be if one spouse had outstanding tax issues that existed before the marriage. By filing separate, the other spouse may claim innocent spouse status and not expose themselves to a tax liability that they did not share in.
