Couples who file together can usually qualify for multiple tax credits such as the: Earned Income Tax Credit American Opportunity and Lifetime Learning Education Tax Credits Exclusion or credit for adoption expenses Child and Dependent Care Tax Credit Joint filers mostly receive higher income thresholds for certain taxes and deductions—this means they can earn a larger amount of income and potentially qualify for certain tax breaks.
Consequences of filing your tax returns separately On the other hand, couples who file separately receive few tax considerations. If you file a separate return from your spouse, you are automatically disqualified from several of the tax deductions and credits mentioned earlier. In addition, separate filers are usually limited to a smaller IRA contribution deduction. They also cannot take the deduction for student loan interest.
When you might file separately In rare situations, filing separately may help you save on your tax return. For example, if you or your spouse has a large amount of out-of-pocket medical expenses to claim and since the IRS only allows you to deduct the amount of these costs that exceeds 7. That would meet the 7. Filing separate returns in such a situation may be beneficial if it allows you to claim more of your available medical deductions by applying the threshold to only one of your incomes.
Deciding which status to use. All you need to know is yourself Answer simple questions about your life and TurboTax Free Edition will take care of the rest. State additional. Looking for more information? Tax Bracket Calculator Easily calculate your tax rate to make smart financial decisions Get started.
W-4 Withholding Calculator Know how much to withhold from your paycheck to get a bigger refund Get started. Most people benefit from filing married filing jointly since tax rates can be lower, and there are more tax deductions and credits available when you file married filing jointly. You can use our free TurboTax TaxCaster , to estimate your overall tax picture and tax refund if you file married filing jointly or married filing separately before you file.
At tax time, TurboTax will guide you through choosing the right filing status for your situation. No matter what your situation, TurboTax has you covered. If you have questions, you can connect live via one-way video to an English or Spanish TurboTax Live tax expert to get help along the way or get matched to a dedicated TurboTax Live tax expert who specializes in your unique situation and can do your taxes from start to finish.
All from the comfort of your home. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. I agree to TheMaven's Terms and Policy. Here are some reasons why married couples choose to file jointly or separately. Pros of filing married filing jointly Should I file a married filing jointly?
By TheStreet Ratings Staff. Another reason to be married filing jointly and not married filing separately could be because of your state. These states are community property states:. This usually causes your taxable income and tax to be lower. However, this is only true if only one spouse is liable on a separate return.
The best way to figure out whether married filing jointly or married filing separately will benefit you the most is to prepare your returns both ways. Then, choose the filing status with the lowest net balance due or refund. If you choose married filing jointly, both of you can be held responsible for the tax and any interest or penalty due.
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