Married taxpayers, who were married on the last day of the tax year, have two filing status options when it’s time to file their annual tax return. The best choice varies depending on each couple’s individual needs.
Married filing jointly offers lower tax rates, but filing separately may be more beneficial depending on the couple’s individual situations.
So, which filing status is best for you?
Did you accrue foreign taxes to a country outside of the US but are subject to US tax on the same income? Did you know that you may be able to qualify for either a credit or a deduction on those taxes? If you meet the following, you might qualify for a Foreign Tax Credit.
-The taxes must be imposed on you
-You must have paid or accrued the tax
-The tax must be the legal and actual foreign tax liability
-The tax must be an income tax