Should married couples file jointly or separately

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. Answer simple questions about your life and TurboTax Free Edition will take care of the rest. For simple tax returns only. Getting Married Tax Tips. Tax Tips for Separated Couples. Getting Divorced Tax Tips. Estimate your tax refund and where you stand Get started. Easily calculate your tax rate to make smart financial decisions Get started. Know how much to withhold from your paycheck to get a bigger refund Get started.

Estimate your self-employment tax and eliminate any surprises Get started. Know which dependents credits and deductions you can claim Get started. Know what tax documents you'll need upfront Get started.

See which education credits and deductions you qualify for Get started. See how much your charitable donations are worth Get started. The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice.

Skip To Main Content. Filing separately may also help reduce the income that is used to determine student loan payments , says Revels.

One of the most common reasons why some couples file separately is to limit their liability for the other spouse's tax errors. Couples typically file separately during the divorce process, says Revels. Citing environmental justice, Murphy halts power plant vote. Load Error. Microsoft and partners may be compensated if you purchase something through recommended links in this article. Found the story interesting?

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