By Stephen Fishman , J. If you're married, you have two options on how to file your income taxes: You can file a joint return, or you and your spouse can each file an individual return. Which is better? Read on. A joint return is a single return for a husband and wife that combines their incomes, exemptions, credits, and deductions.
You can choose married filing jointly as your filing status if you are married and both you and your spouse agree to file a joint return. You can file a joint return even if one of you had no income or deductions. Only a married couple can file a joint return.
You are considered married for tax purposes for the entire year if, by December If your spouse dies and you do not remarry in the same year, you may file a joint return for that year. This is the last year for which you may file a joint return with that spouse. If you're married, you always have the option to file your taxes separately. If one of you won't agree to file a joint return, you'll have to file separately, unless you qualify for head of household status. When you file a separate return, you report only your own income, exemptions, credits, and deductions on your individual return.
If you live in a community property state, the income you and your spouse earn is split evenly between you, as are your expenses unless they are paid by one spouse with his or her separate non-community funds—for example, money you earned or inherited before marriage. There are several disadvantages to filing separately that you need to be aware of, however, because these can easily outweigh any potential benefits:.
As a result of the Tax Cuts and Jobs Act, the tax rates in effect during through for married taxpayers filing separate returns are exactly half those for marrieds who file joint returns.
Nevertheless, most married people save on taxes by filing jointly, particularly where one spouse earns most or all of the income. This is because filing jointly shifts the high earner's income into a lower tax bracket. If spouses earn about the same income, there should be little or no difference in their tax rates whether they file jointly or separately.
The only way to know for sure if you'll pay more or less taxes by filing separately or jointly is to figure your taxes both ways. This isn't hard to do if you use tax preparation software. For couples to qualify for certain tax credits, they cannot file married filing separately and must file a joint tax return. Some popular tax credits that couples who file married filing jointly can qualify for include:. Typically, couples who file married filing jointly can have more income and still qualify for certain tax credits and deductions.
Maximize your deductions and get every tax break you qualify for when you file your taxes with TurboTax Deluxe. We'll search over tax deductions and credits to make sure you get the maximum refund possible. Couples who choose to file separate tax returns receive few tax incentives. Filing separate tax returns cause you to be taxed at a higher tax rate. In general, couples who file married filing jointly receive more tax breaks, but sometimes it might be a good idea to consider filing a married filing separate tax return.
The best filing status will depend on your individual situation. 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.
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