Question by Donna S:

Is Single 1 tax status the same as being married, but withhold at a higher single rate?

I got married in Sept. 2006. My payroll changed my tax status to Married 1. I ended up owing the IRS in April, 2007. (My husband never changed his status from Single 1.) My accountant suggested that I file as Married, but withhold at a higher single rate. After a pay period or two, I noticed that my payroll dept. did not do this. They claimed that their paychex system does not have a check box for that option. They switched my status to Single 1. I feel that not only is too much money being withheld from my paycheck, but also, can't I get into trouble for filing as a Single 1 when I am married? Does anyone have any recommendations for how my husband and I should file? (Our accountant last year did a Married, filing separately return. My status was Married, 1 at the time. My husband was Single 1.)
Thanks.




Best answer:

Answer by MukatA
If you were married on the last date of year 2006, then your status cannot be Single. It can be Married Filing Jointly or Married Filing Separately. Your husband should not file as Single.
Here is a tip from IRS publication:
"If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Choose the method that gives the two of you the lower combined tax."

Give your answer to this question below!

Other posts like this, by keyword: