Date: 2008-02-15

• Not sure how to file? The government makes it simple: if you got married any time in 2007, you are considered to have been married for the entire year for tax purposes. Even couples who wed right before midnight (11:59 p.m.) on December 31, 2007, are considered married for the full 2007 tax year.  

• Some couples question which filing status to choose once they get married. “Newlyweds should remember that they have the choice of filing jointly or separately, and that they can decide which status to choose each year based on their situation,” explains Mark Steber, vice president of Tax Resources, Jackson Hewitt Tax Service. “Generally speaking, using the ‘married filing jointly’ status will offer the lowest tax liability and the highest standard deduction. However, ‘married filing separately’ can also be advantageous, especially if one of the filers has large deductions or expenses that may provide a better tax benefit when taken individually on a separate return.” 

• Couples should note that certain credits—including the Child and Dependent Care Credit, the Earned Income Tax Credit, the Hope or the Lifetime Learning Credit or the student loan interest deduction, to name a few—are not available under the “married filing separately” status.   

• When filing jointly, the 15 percent tax rate bracket is now $63,700 (up from $61,300) while the standard deduction for married couples filing jointly has increased to $10,700 (up from $10,300).  

• Taxpayers should make sure that all paperwork reflects their legal name, especially those whose name changed when getting married or divorced. Names listed with the Social Security Administration must match all forms of identification and documents from employers, loan holders, and investment accounts. If there is a discrepancy, the tax return will be rejected and filing will be delayed.  

• If an individual obtains an annulment that declares that a marriage never existed, he or she is considered unmarried for this and any previous tax years. That individual must amend tax returns for all the tax years not affected by the statue of limitations for filing a return (usually three years), to reflect this change in marital status.  

• Alimony and spousal maintenance payments can often be deducted by the spouse making these payments.  The person receiving the payments should remember that this is considered taxable income in the year received.  

• A person may file as head of household if he or she was separated the entire last half of 2007 and had a dependent child living in the household.