What is the difference of filling jointly or single with the following scenario;
One works 80 plus hours a week
On payroll - makes 160k/year
The other owns a business and makes 75k/year
Which is the best way to file; married or single for the tax on OT benefits?
If you are legally married, then filing "single" is not an option. Your filing choices are to file a joint return or to file married filing separately.
Under the One Big Beautiful Bill, the married filing jointly would still be the best option for your scenario, based on the information provided, to maximize the overtime deduction benefits.
How the Overtime Deduction Works:
In your specific situation, your combined income would be $235,000 ($160k + $75k). Filing jointly keeps you well below the $300,000 MAGI phase-out threshold, allowing you to claim the full $25,000 deduction. If you were to file as single, the higher-earning spouse's income of $160,000 would put them immediately into the phase-out range for the deduction, significantly reducing or eliminating their benefit.
Also worth noting:
For more detailed information see:
Please feel free to reach out with any additional questions
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