There are 5 filing status -
1. SINGLE.
2. MARRIED FILING JOINT.
3. MARRIED FILING SEPARATELY.
4. HEAD OF HOUSEHOLD.
5. QUALIFYING WIDOW with a dependent child
In my opinion nothing better explain this than IRS website, do refer to it.
1. SINGLE- It includes, never married/ legally separated/ widowed( not remarried/ do not have a dependent child). The status on Dec. 31st decided the filing status.
2. MFJ- As the title suggests, the parties must be married on Dec 31st, they may live apart but not legally separated.
Now if the parties are divorced----status changes to " Single",
but if a spouse diesthere are three options-
i)a joint return may still be filed for that tax year, or
ii)if there's a dependent child, MFJ filing can be done for two subsequent years, however no exemption can be taken for the deceased.
iii)the person may chose to file "Single", if he hasn't remarried.
3. MFS- Here the parties are married as on Dec. 31st but decide to file the return as MFS,i.e the parties agree not to file a single return, they report separate Income on separate return and deduct their own expenses.
4. HoH-The party is unmarried , can claim a dependent and provides for more than half of the cost of keeping up a home for the dependent, for more than half of the year.
5. Qualifying widow(er) with a dependent child- This status is available only for a limited period. The party is unmarried, as the spouse has passed away during the year, and as on 31st December, she hasn't remarried.
In the year of spouse death, the party can file a joint return and for the subsequent two years can file under QW if the party has a dependent child, i.e. the surviving spouse has maintained a household that for the whole of the taxable year was the principal place of abode for the child.
After two years the QW status would not be available and dependending upon the circumstances it would change to single/ HoH/ MFJ/MFS.
Scenario 1:
X is married to Y with no dependent child. Y dies during the year. X filing status can be single,
Q1.Can he even claim MFJ( for that particular year)when there's no dependent child?
A1.Yes, irrespective of whether there is a dependent child or not
Scenario 2:
X married to Y with dependent child. Y dies during the year
Q2.X status for that tax year MFJ and for two subsequent year he can file MFJ without claiming the exemption for deceased spouse?
A2.It would be MFJ in the year of death of spouse and Qualified widower for the next 2 years, subject to conditions (i.e, should have maintained principal residence for the child for the entire year)
Q3.In either case, after the death of the deceased the surviving spouse can not claim the exemption for the deceased, though he can file MFJ, right?
A3.Yes, can avail benefits of standard deduction & lower tax rates but no personal exemption for deceased spouse can be claimed.
*I had asked these questions on cpanet forum and the above mentioned answers were replies from another user on the forum.
Beginner's questions
I was approved to take the Exam and about to start the prep, but there were still some doubts. So after much research, deliberations and brain storming, following is what I came up with-
Q1. Which section to take first/what order should I take the Exams?
I took Financial first. I had read its toughest of all/ maximum chapters( per Becker/ Wiley) and then the 18 months period( time within which your first exam credit will expire-time may differ within state), will start ticking the moment I take the first paper, so I can have lot of time for the most voluminous chapter outside the 18 month period. And that was a wise choice.
****Would add here, the subject is not difficult, after putting in some effort you can definitely grasp it, the major issue is"REMEMBERING IT ALL", so whatever is your study strategy always remember to have enough time for revisions.
Q2 In what order should I take the Exams?
A yahoo answer worked for me- Financial---Auditing---Regulation---Business ethics. It made sense too- Finance is ubiquitous, you will see it all sections and its good to master that first , helps you understand other subjects well. And then there's lot of auditing in business ethics material, so take auditing first and so on.
Q3. How much time should I devote on each Section?
Now this would depend on an individual's capacity. But I would reiterate that the key to pass these exam is to grasp the concept well, with so many things being introduced, it is not very unusual to be confused, so have time for revision. I took
- 3 months for FARE scored 90
- 1.5 Month for AUD, scored 82.
- 2 months for REG, scored 95.
- 20 days for BEC, scored 88.
Most Important lesson learnt--
Your goal should be to finish off the exams asap, of course don't take the exam if you are not prepared, but try to get done with the papers as soon as you can.
Can you take the test?
You need to be qualified to take this exam. Oh yes! if you are considering taking the CPA test, make sure that you have the required education. Each State has it's own requirement and you can find them, on the State's Accounting Boards website. For International Students, your credentials, need to evaluated. The State Accounting Board provides a list of recognized agencies, who would do a credit evaluation and provide a US equivalence of your International Degree. You can find a Completer list of National Accrediting Agency at www.ed.gov
When I was planning to take the exam, I was so confused- about application, credential evaluation, NTS, NASBA, but once you start the process, everything will become very clear.
Just remember each state has it's own rules, so first thing, visit your state's website and don't hesitate to call them!!!
As I was a California candidate , I downloaded the handbook for taking the exam and then sent over my transcripts for evaluation. I chose WES, for my transcript evaluation.
***"What are transcripts?", they are very similar to your mark sheets, containing the subjects you have studied and the the marks you have scored.
Be very careful, WES the agency, I chose, does not accept mark sheets, I had to send then official transcripts, which were sealed in University's envelope and sealed by the registrar.So make sure what form of document is acceptable by the your agency.
WES evaluated my transcripts and sent a copy to me and to the CA accounting Board. Next I made an application to the Board for taking the test, got the approval
The beginning
Hello, if you are visting this blog, you are probably...... an accounting student/ a CPA aspirant or a candidate,and a 75% chance you searched kiting/lapping on google and that brought you here.
Taking the Test
Whatever the reason may be,I am glad you are here. I haven't been updating the blog for long, but you cant keep away for long when you love to write ? So here I am, writing what I mostly like to talk about....Accounting, specifically here, CPA.
Taking the Test
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