What does married filing separately mean on the CPA exam?
Married filing separately. A filing status where spouses report their own income on their own returns. It removes or shrinks several benefits, so it is usually chosen for a reason other than tax.
Defined against Sec. 1(d).
Which CPA exam sections use married filing separately?
Married filing separately appears in the REG section of the CPA exam.
Related terms
- perfection: The step that makes a security interest good against other creditors, usually by filing a financing statement.
- separately stated item: Income, deduction or credit that keeps its own character as it passes through to the owner, because the owner's own situation decides how it is taxed.
- earned income: Compensation for personal services -- wages, or net earnings from self-employment.
- equity method: Used when the investor can exercise significant influence, presumed at 20% or more of the voting stock.
- ordinary loss: A loss deductible against ordinary income without the capital loss limits.