MFS/Single/HOH

[MGC94]

taxpayer and spouse do not live together over a year going on 2 years. 

last year filed MFJ 

there are 2 dependents 

he lives in a different house

can taxpayer file HOH and claim 2 children for dependents and spouse file single? 

They are not officially divorced, but have a notarized separation agreement (state is NJ)

Thank you  

[GodFather]

Based on the details you provided it sounds like the one can file HOH and the other single.  Since they lived apart for more than 6 months, I believe that is one of the main qualifiers.   

See this link for more details:

Head of Household Divorce | H&R Block (hrblock.com)

[BobKamman]

The one with the kids can probably file HoH.

The other can definitely not file as single, at least based on this explanation of the law in New Jersey ("where we are too dumb to pump our own gas!")

Did you know that there is no "Legal Separation" in New Jersey?

https://www.kaplandivorce.com/blog/legal-separation-in-new-jersey

[PATAX]

Quickfinder and taxbook should both address this with Flowcharts. Both excellent

[Skylane]

Agree with @BobKamman . Only the parent who the kid lived with is eligible to file HOH. The other must file MFS. 
New Jersey does not recognize a separation agreement notarized or not. They must file MFS or MFJ the taxpayer would have to file MFS. The parent with the kids in residence could file HOH

They would be better off filing MFJ.

At @BobKamman  seriously? I’ll be back in a little bit to tell you about New Jersey fuel.

[ljr]

HOH for parent with kid, MFS for the other one 

[BobKamman]

A lot of people who are told would be better off filing MFJ, have to learn the "innocent spouse" rules when they find out how much the "separated" spouse really made.  

Some of them might even have a case against the preparer who suggested it.  

[MGC94]

MFJ $2,395 FED -$105 STATE

MFS HIM -$3,516 FED -1,356 STATE

HOH HER $8,734 FED $2,945 STATE 

[BobKamman]

Does "-" mean balance due?

[Skylane]

@BobKamman   <<where we are too dumb to pump our own gas!>>. 
A good friend of mine owns a few New Jersey service stations and has been on the board of the New Jersey gasoline retailers association for 20 years or so. They have successfully been the only state that has fought against self service. Believe it or not it keeps the fuel prices down, because the large aggregators have to pay labor and compete with a little guys. What a surprise, additionally, I always found it for more comfortable, to get fuel pumped by an attendant, especially in winter, then be forced to do it myself. I think that goes for the seniors and handicapped as well. It seems to be dying out, but New Jersey is one of the few remaining places where you can get your oil checked and windshields clean if they’re trying to give you could service.

personally, I abandon in New Jersey every December and come back in May after tax season

as for the innocence spouse rule, there’s nowhere near enough information presented to go in that direction.

[BobKamman]

@Skylane I hope your pro-regulation friends don't hurt themselves patting themselves on the back, because they aren't the only state (as you falsely claim) that has fought against self service.  The pumps have to be staffed in Oregon also, And my daughter loves it, so maybe this is a guy thing.  Tell me again, though, why you are not pro-choice because paying labor keeps costs down.  

"When there is nowhere near enough information" to determine if a joint return will hurt an innocent spouse, my choice is to proceed on the side of caution.  But unlike pumping gas in New Jersey, people can make their own choice about how much risk to take.  

[joshuabarksatlcs]

The pumps have to be staffed in Oregon also....

@Skylane's claim isn't exactly false.  Per Google:

New Jersey is the only state in the U.S. that doesn’t allow customers to pump their own gas — anywhere. There’s always an attendant on duty to pump gas for customers at these full-service stations.

Oregon is the only other state besides New Jersey with a full-service law. However, Oregon’s laws are far less strict and allow certain parts of the state to have self-service gas stations.

[BobKamman]

Yes, self-pumping is allowed in the parts of Oregon where no one lives, except for the people who have gun racks in their pickup in case they come across a federal agent.  

You know how it's hard to figure out how to open the gas tank in a rental car?  Last time I was in Oregon, I popped open the trunk by mistake.  The guy pumping gas accidentally dropped his keys in it before he closed it for me.  This was at a mega-station near the airport with about 18 pumps  and 9 guys running back and forth in the rain, trying to keep all the cars serviced.  But I'm sure the gas cost less because of their labor.  

[Skylane]

@BobKamman 

Of course I was aware of CO. My recollection is that they began self service during CoVid a few years back. My friend was annoyed because he said it that although it was supposed to be temporary thing,  once the aggregators like Walmart, Costco etc got their way, there'd be no going back... "Paying labor" is a  whole lot more expensive for the big guys than the small retailers. Without paying labor, the big guys have a lot more price leverage and tend to force the mom & pop shops out.... NJ economic realities (we still have plenty of payola, paying under the table, illegals, etc.).... Suffice it to say that in April 2020 my friends gas station was pumping at 151.9/gal and Walmart was higher...BTW, I've been in Fl (pump your own) for a couple of months... 2 weeks ago, I pumped for an old guy w/ handicap plates just sitting in his car waiting for an attendant to come out.... One of the employees was busy selling coffee, sandwiches, and smokes. The other was around the side of the building having a smoke...  

Not sure what 'pro-regulation friends' refers to but he is about as far right as they come (and a retired cop).  I have no clue what  your 'pro-choice' statement refers to.... 

I don't claim to be an expert on innocent spouse rules. I've only had a couple in the last 4 years or so... new client 2nd marriage to  a disabled carpenter on SDI. She was an asst. teacher w/ 2 kids maybe 20K. I asked some questions and told her she'd probably get a pretty nice refund. She said 'they're only gonna keep it like they did last year"... apparently he had some pretty big sins against the irs in a prior life... so she did get the $$ and a 1040x.. that's what ISR is there for.   I do agree w/ you that you have to ask questions (which you tried with the OP).... I still don't see much in the way of a response... and yeah, I read the posts with the amounts and scratched my head too. I don't buy any of those numbers without a better explanation. 

[taxes96786]

do they have a document from the court? Notarized agreement is between the parties. Research the tax law addressing whether they qualify for MFS or single. Then you can determine whether either qualifies for HOH. I believe they are MFS. 

[MGC94]

yes "-" means balance due

her w2 is

fed $90,579     w/h $14,510

state $108,122   w/h $5,202

his w2 is

fed $83,575      w/h $7,735

state $83,575      w/h $1,817

[MGC94]

on the IRS website I did the ITA interactive tax assistant and it said the same thing. HOH for the mom and MFS for the dad. I just wanted to double check and also what about with NJ? 

[Skylane]

@MGC94  Yes mom HOH and dad MFS. NJ does not recognize separation agreements. IRS defers to State Law. Mom is “considered unmarried” (check the HOH rules)

[BobKamman]

@Skylane "Not sure what 'pro-regulation friends' refers to but he is about as far right as they come (and a retired cop).  I have no clue what  your 'pro-choice' statement refers to.... "

Right wing is always in favor of regulation when it fits their ideology, whether it's power of teachers and school libraries, or criminalizing protests against fossil-fuel industries.  Their zeal is surpassed only by the desire to cut taxes, which they don't see as defunding the police.  Suggest to your right-wing friends that consumers have a choice -- pump their own gas, or go to a station that does it for them -- and they may gag on their unregulated alcohol because their town prohibits cannabis.

[BobKamman]

So she is having twice as much tax withheld on slightly higher income.  This is why telling her that MFJ is better, would be malpractice.  It's also why I have walked away from some divorcing clients, because the conflicts of interest are screaming that it's a situation to be avoided.  

[Skylane]

@BobKamman 

LOL….for the last 15-20 that I’ve been around here, (most) users have expressed their political views elsewhere. You’re good at tax prep and bring a lot to the table here….

As long as I’m smiling let me pose a rhetorical question…. Which political party has members with the mantra “I’m right… you’re evil”?