Is it best to file jointly or separately if my student loan can be forgiven if I fall below the poverty level (I only get SS. She has no loan/didn't countersign mine)?

[georgesT · Accepted solution]

It depends.

Filing a joint Return will generally give you a bigger refund or less taxes due. Even if you file separate, your spouse income will be considered to determine the household income for the poverty line. Your tax rate is higher When you file separately and you won't be able to claim the following credit:

• Education benefits
• Earned Income Credit (EIC)
• Child and Dependent Care Credit (usually)
• Adoption Credit (usually)
• The same benefit married filing jointly couples get for personal exemptions, itemized deductions, the Child Tax Credit, and capital losses (all of these deductions are reduced by half)
• The standard deduction if your spouse is claiming itemized deductions.

In addition, if you live in the community property states of Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you have to deal with community property allocations and adjustments, which adds extra work and complexity to your tax preparation chores.