This is a manuscript of the 3rd edition, a work in progress sponsored by the US National Science Foundation.
A husband and wife may make a single return jointly of income taxes even though one of the spouses has neither gross income nor deductions, except as provided below: The above exception shall not apply if the surviving spouse remarries before the close of his taxable year, nor if the taxable year of either spouse is a fractional part of a year under section a 1 ; in the case of death of one spouse or both spouses the joint return with respect to the decedent may be made only by his executor or administrator; except that in the case of the death of one spouse the joint return may be made by the surviving spouse with respect to both himself and the decedent if no return for the taxable year has been made by the decedent, no executor or administrator has been appointed, and no executor or administrator is appointed before the last day prescribed by law for filing the return of the surviving spouse.
If an executor or administrator of the decedent is appointed after the making of the joint return by the surviving spouse, the executor or administrator may disaffirm such joint return by making, within 1 year after the last day prescribed by law for filing the return of the surviving spouse, a separate return for the taxable year of the decedent with respect to which the joint return was made, in which case the return made by the survivor shall constitute his separate return.
Married Filing Separately and Allocation of Deductions and Expenses Most married taxpayers can choose whether to file joint returns or separate returns. Most couples will pay less tax if they file joint returns, but in some situations they will benefit from filing separate returns.
A married individual filing a separate return must report on that return his or her own items of gross income, exemptions, deductions and credits. IRS PublicationDivorced or Separated Individualsincludes a chart showing how itemized deductions are allocated when separate returns are filed in community and noncommunity property states.
Allowable deductions may be taken by the individual who actually makes the expenditure. Newcombe, 10 TCMDec. When Married Taxpayers Should File Separate Returns Married couples usually have a lower tax liability if they file a joint return than if they file separately because of the tax rates and other provisions which are generally more generous to married individuals filing joint returns.
However, circumstances may be such that one spouse does not want to incur the potential liability for tax on a joint return and would therefore rather file a separate return even though the resulting tax liability may be higher.
There are a few, somewhat unusual situations when a married couple might have a lower combined tax liability by filing separate returns rather than by filing a joint return. When these fact patterns appear, computations of tax liability should be made under both the married filing separate returns rules and the married filing jointly provisions so that a comparison can be made.
Miscellaneous Itemized Deductions Miscellaneous itemized deductions are allowed only to the extent they exceed 2 percent of an individual's adjusted gross income.
If one spouse itemizes deductions, however, the standard deduction for the other spouse is zero.
Personal Casualty Gains and Losses The excess of personal casualty losses over personal casualty gains in a tax year is deductible only to the extent the excess is greater than 10 percent of adjusted gross income. If they file separate returns the loss would be deducted from ordinary income, while the gain would be taxed at the rates for capital gains.
If they file a joint return, the personal casualty gain is offset by the personal casualty loss. Medical Expenses The deduction for medical expenses is allowed only to the extent the expenses exceed 7.
Husband does not have any medical expenses for the tax year. Sales or Exchanges of Business Property and Involuntary Conversions Taxpayers treat gains and losses from the sale or exchange of property used in a trade or business, or from the involuntary conversion of capital assets held in connection with a trade or business, as long-term capital gains and losses when recognized gains in a current tax year exceed recognized losses.
When the gains do not exceed the losses, the gains and losses are treated as ordinary.Payroll Accounting Chapter 4 Created by kapeach. 86 Terms Scores Info Add to Folder Log in 1. the employer makes no matching contribution 2. participation is not madatory 3.
the employer does not endorse any IRA sponsors Read More. View Notes - Ch. 4 Matching from ACCOUNTING at Santa Ana College. of noncash fringe benefits E. $3, deduction in computing taxable income F. Withholdings from gross pay that reduce the amount.
Chap 1 Matching%(4). As you learn about accounting for payroll and fringe benefits, keep the matching principle in mind. As the above examples show, the date on which a company pays wages or fringe benefits is not necessarily the date on which the company reports the expense on its financial statements.
Doing Business with Us. Suppliers; Licensing; Rights & Permissions; Auctions; IT Policies, Process & Standards; Search. Financial Accounting Fundamentals, Ch. 1, Wild, Page 1 CHAPTER 1: INTRODUCING FINANCIAL ACCOUNTING I.
IMPORTANCE OF ACCOUNTING Accounting is the language of business and is called this because all organizations set up an. CHAPTER * EMPLOYMENT REGULATION *Function of commissioner with respect to chapter.
C. Temporary injunctions would not be granted to restrain enforcement of penal provisions even if enforcement of chapter would be accompanied by injury to plaintiff's property.