Can You File Taxes Together if Not Married?
Explore the options and implications of filing taxes jointly for unmarried couples, including common-law marriages and domestic partnerships.
Tax season often brings questions about filing status, especially for couples who live together but are not legally married. Understanding the tax filing options available to unmarried partners is essential, as it can significantly affect financial liabilities and benefits. Navigating these options requires awareness of federal and state regulations that determine how you can file taxes jointly or individually.
Federal Recognition of Marital Status
The IRS permits only legally married couples to file as “Married Filing Jointly” or “Married Filing Separately,” based on the legal definition of marriage, which requires a formal ceremony and marriage license. Unmarried couples, regardless of how long they have been together, cannot file jointly under federal law. Even in states that recognize common-law marriages, the federal government mandates a legal marriage certificate for joint filing. This discrepancy between state and federal requirements can complicate tax filing, necessitating careful planning.
State Variations in Common-Law Marriages
Common-law marriage, recognized in states like Texas, Colorado, and Iowa, allows couples to be considered married without a formal ceremony. Each state has specific criteria, such as cohabitation and mutual agreement. Couples in these states may file state taxes as married, accessing benefits like lower tax rates. However, this recognition does not extend to federal tax returns, where a legal marriage certificate is still required. As a result, couples may face the challenge of having different filing statuses at the state and federal levels, requiring thoughtful coordination.
Joint Filing as Registered Domestic Partners
States like California, Nevada, and Oregon allow registered domestic partners to file jointly for state taxes, granting rights similar to those of married couples. However, the federal tax system does not recognize these partnerships, requiring separate federal tax returns. This dual filing system demands precise record-keeping to accurately allocate income and deductions, such as mortgage interest, between partners. Using detailed spreadsheets or specialized tax software can simplify this process and reduce errors.
Claiming Head of Household
Head of Household (HoH) status provides a lower tax rate and a higher standard deduction compared to filing as Single. To qualify, the taxpayer must pay more than half the cost of maintaining a home and have a qualifying person, such as a child or dependent relative, living with them for more than half the year. Proper documentation of household expenses and a clear understanding of who qualifies as a dependent are critical to claiming this status.
How to Handle Shared Income
For unmarried couples, shared income from assets like rental properties or investment accounts must be allocated and reported accurately. Each partner reports their share of income and deductions based on ownership percentages or agreements, ideally documented in writing. For instance, if a rental property is jointly owned and income is split equally, each partner reports 50% on their individual tax returns. Misreporting shared income can lead to IRS scrutiny, making detailed records essential. Consulting a tax professional can help ensure compliance and minimize liabilities.
Dependent Considerations
When unmarried couples share financial responsibility for dependents, determining who can claim them requires adherence to IRS guidelines. Only one taxpayer can claim a qualifying dependent. The IRS “tiebreaker rule” prioritizes the parent with whom the child lived the longest or, if time is equal, the parent with the higher adjusted gross income (AGI). For dependents like elderly parents, income and support tests apply. Maintaining proper documentation, such as custody agreements and financial support records, is essential to substantiate claims and avoid penalties.