Get 8958

On Form 8958, a couple lists individual sources of income for each of them, such as employers, banks that pay interest, stocks that pay dividends, capital gains and tax refunds. The couple reports the total amount received from each source, then allocates a portion of the total to each person.

The Internal Revenue Service (IRS) created Form 8958 to allow couples in community property states to correctly allocate income to each spouse that may not match what is reported to the IRS.

In general, couples with no dependents or education expenses can benefit from filing separately if one has high income and the other has substantial deductions. Generally, other instances when this is appropriate are related to divorce, separation, or relief from liability for tax fraud or evasion.

If you file a federal tax return separately from your spouse, you must report half of all community income and all of your separate income. Likewise, a registered domestic partner must report half of all community income and all of his or her separate income on his or her federal tax return.

The laws of your state govern whether you have community or separate property and income. You must attach Form 8958 to your tax form showing how you figured the amount you're reporting on your return.

Your eligibility for a stimulus check of any amount ends totally if you're a: Single-filer or married filing separately whose AGI is $80,000 or more.

If you want to protect your own refund money, you may want to file a separate return, especially if your spouse owes child support, student loan payments, or back taxes. All of these may be taken from your tax refund by the IRS after you file a joint return.

You lived with a spouse at any time during the tax year. The combination of your gross income, any tax-exempt interest and half your Social Security benefits is more than $25,000.

if you file a joint married return with your husband and he owes taxes from before you were married, the IRS will most likely keep the entirety of any refund to satisfy his debt, assuming the debt is more than the refund. ... The downside to filing separately is that you may lose out on some tax breaks.