Tax return is a complex issue. Different situations in our life affect the way we can file tax returns in Mississauga. There are different rules for an individual filing tax return and something other for people who have just undergone divorce.
One of the biggest questions faced by couple who have recently undergone divorce is whether to file separate or joint tax returns?
The simple answer to this question is you can file joint tax return only when you were still married when the tax year came to an end. Consensus of both the parties involved in the divorce must agree for joint return and sign the related documents.
You are supposed to tick mark the box that you are filing the tax return as married couple. Joint tax returns cannot be filed by domestic partners and same sex couples.
Now there are certain points to consider ascertaining whether you fall in married or divorced category. In case you are not living together anymore, but there is no written decree that shows that your relation is terminated than you will have to file tax returns in Brampton as married couples.
You will be considered as single only when your divorce has been accepted and termination of your marital status has been done.
Now there are both benefits and drawbacks of filing tax returns in Brampton as joint and this is something which should be discussed by your attorney or tax advisor. Depending on individual income, credits and deductions, your tax returns can be lower or higher. The main drawback of filing joint tax return is that you are equally responsible for the tax liabilities of your spouse, this includes penalties, interest and tax deficiencies. This tax return can also be used by a spouse as a bargaining tool and agreement of both parties is required to come with a result.
In case there is a joint liability for a child, the matter of tax return has to be moved to a court in coming out with an agreement.