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Step 1
Separate your income from that of your spouse. If you live in a community property state, your income for tax purposes could be separate or community income as determined by the law in your state. You should only report the income that is legally specific to you.
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Step 2
Divide itemized deductions between you and your spouse depending on whether the expenses were paid with jointly owned funds or paid with your own funds. Equally divide expenses paid with joint funds.
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Step 3
Use the basic standard deduction if your share of the itemized deductions are a lesser amount. Your spouse would also have to use the standard deduction which is half the standard deduction allowed for a joint return.
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Step 4
Limit your capital loss deduction to $1,500 rather than the $3,000 allowed to joint return filers. You cannot take certain credits such as the earned income credit, the credit for higher education expenses, and the credit for child and dependent care expenses in most cases.
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Step 5
Qualify for Head of Household status if you are considered to be unmarried at year end. You must also have paid more than half the costs of keeping up a home for the year or have a qualifying person live with you. A dependent parent who doesn't live with you also qualifies. The tax advantages include a lower tax rate, a higher standard deduction (even if your spouse itemizes) and the ability to claim certain credits for earned income and dependent care.
