Like many of the decisions that are made in a marriage, the choices that couples make are related to their specific situation. The same goes for the marital status you choose when you get married. After marriage, your filing status will change from single or head of household to married filing jointly or married filing separately, but couples often ask themselves, “What is my filing status now that I’m married?” and “Should I file married jointly or separately”?
Depending on when you got married, you may not have been married for more than half the year when tax time rolls around. Generally, the IRS considers you married all year, even if you don’t get married until the last day of the year. So if you are legally married from December 31, then you must file a joint declaration of marriage or a separate declaration of marriage.
Here are some reasons married couples choose to file jointly or separately.
Let’s review some pros and cons of filing a joint or separate tax return.
Advantages of Filing a Married Joint Return
Should I File a Married Joint Return?
In general, couples who file jointly instead of separately receive more tax breaks and, in turn, more money in their pockets at tax time.
For example, the IRS gives couples filing joint returns the largest standard deduction each year. This standard deduction allows couples to immediately deduct a significant amount from their taxable income. To 2022the standard deduction for a couple filing jointly is $25,900 instead of $12,950 if married filing separately or single.
For couples to qualify for certain tax credits, they cannot file a separate marriage return and must file a joint tax return. Some popular tax credits that married couples filing jointly may qualify for include:
- Child and Dependent Care Tax Credit up to 35% of $6,000 in expenses ($2,100)
- Earned Income Tax Credit up to $6,935 for a family with 3 or more children
- American Opportunity Tax Credit up to $2,500 per person
- Lifetime Learning Tax Credit up to $2,000 per tax return
Generally, married couples filing jointly can have more income and still qualify for certain tax credits and deductions.
Cons of Married Filing Separately
What are some disadvantages of married filing separately?
Couples who choose to file separate tax returns receive few tax breaks. Filing separate tax returns causes you to pay taxes at a higher tax rate. The standard deduction for married taxpayers filing separately is significantly lower than that available for married taxpayers filing jointly of $12,950 for 2022.
Some common disadvantages of filing a separate tax return also include:
- You cannot take a deduction for student loan interest.
- Usually limited to a smaller IRA contribution deduction.
- Disqualified from various tax credits and benefits available to married filing jointly.
When would it be a good idea to file a separate return?
In general, couples who file a joint tax return receive more tax breaks, but sometimes it may be a good idea to consider filing a separate tax return.
These situations may include the following scenarios:
- If they are together, the married couple’s income would be too high to qualify for the deduction for medical expenses, but if they file a separate marriage return, one spouse may qualify to deduct their medical expenses.
- If your spouse’s tax bill is significant, filing separately can protect your refund from being applied to what your spouse owes.
- If your spouse has not paid any outstanding child support payments, filing separately would prevent the IRS from taking its share of any refund.
How to decide which marital status to use?
The best filing status will depend on your individual situation. Most people benefit from filing a married joint return, since tax rates may be lower and there are more tax deductions and credits available when filing a married joint return. At tax time, TurboTax will guide you through choosing the right filing status for your situation.
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