Generally, yes, I have listed pros and cons to file or not file jointly.
Consideration to file jointly
* Larger Standard Deduction
* Access to Valuable Tax Credits (Earned Income Tax Credit (EITC), American Opportunity and Lifetime
Learning Credits, and Child and Dependent Care Credit).
Consideration Not to file jointly
* Protecting Yourself from a Spouse's Tax Liability: You and your spouse are "jointly and severally" liable for any tax, interest, or penalties due. This means the IRS can come after either spouse for the full amount.
* Itemization: For example, medical expense deduction is only available for expenses that exceed a certain percentage of your Adjusted Gross Income (AGI). If one spouse has significant unreimbursed medical expenses and a lower AGI, filing separately might allow them to meet the AGI threshold for the deduction.
* Student Loan Repayment Plans: Your monthly payment is based on your AGI. Filing separately could result in a lower AGI.
In additional to above: Consideration needs to be made to if you live in a community property states ( Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin). Additional form (8958) will need to be filed if filing married separately.
Generally, yes, I have listed pros and cons to file or not file jointly.
Consideration to file jointly
* Larger Standard Deduction
* Access to Valuable Tax Credits (Earned Income Tax Credit (EITC), American Opportunity and Lifetime
Learning Credits, and Child and Dependent Care Credit).
Consideration Not to file jointly
* Protecting Yourself from a Spouse's Tax Liability: You and your spouse are "jointly and severally" liable for any tax, interest, or penalties due. This means the IRS can come after either spouse for the full amount.
* Itemization: For example, medical expense deduction is only available for expenses that exceed a certain percentage of your Adjusted Gross Income (AGI). If one spouse has significant unreimbursed medical expenses and a lower AGI, filing separately might allow them to meet the AGI threshold for the deduction.
* Student Loan Repayment Plans: Your monthly payment is based on your AGI. Filing separately could result in a lower AGI.
In additional to above: Consideration needs to be made to if you live in a community property states ( Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin). Additional form (8958) will need to be filed if filing married separately.