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Maria and Miguel Blanco Are in the Midst of Negotiating

question 5

True/False

Maria and Miguel Blanco are in the midst of negotiating a divorce.Because both parties are unwilling to share any current financial information,their joint Form 1040 for 2014 is not filed until October 31,2015,when the respective divorce attorneys forced them to cooperate.The Blancos should not be subject to any Federal late-filing penalties,because the reasonable cause exception applies to their family discord.


Definitions:

Head of Household Status

A tax filing status available to unmarried taxpayers who provide a home for certain qualifying persons and pay more than half of home maintenance expenses.

Married

A marital status indicating that two individuals are legally united in marriage, influencing their filing status and tax considerations.

Adjusted Gross Income (AGI)

A calculation derived from your total earnings to ascertain the taxable portion of your income.

Deductions and Credits

Financial tools allowed by tax law to reduce taxable income or the tax itself, with deductions lowering taxable income and credits directly reducing the tax payable.

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