Why Filing Married Separate Is Such a Bad Choice?
In many of our cases, the question surfaces as to how a client should file – Joint (JT), Head of Household (HH), or Married Filing Separately (MFS). Filing Single is not an option during the divorce process where there is no legal separation document or divorce decree. There is specific criteria (see or ask for a FFLLC Flow Chart) that must be met to file HH, which usually results in the lowest tax. Sometimes, MFS is the preferable status, for instance if your client suspects that his or her spouse is hiding income or assets. Generally, the tax rate and the resulting tax liability will be higher for a individual filing MFS versus Single.