Jane and Ben are married and usually file a joint return. They live in a separate property state (rather than a community property state). Jane is a partner in a law firm and typically generates income of $162,000. Ben is a grade school teacher with wage income of $75,000. The couple has investment income that is less than their standard deduction. With enactment of the deduction for qualified business income, the couple is wondering if they should continue to file as married filing jointly or instead use the married filing separately status. Why do they wonder this, and what advice would you offer them and why? If each spouse files separately, Jane's income is close to the threshold relevant for , such as the law firm. The use of the married filing jointly filing status will result in QBI deduction. Therefore, from a tax viewpoint, it would probably benefit Jane and Ben to file .

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Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.