As xmasbaby0 mentions above, it is usually most advantageous to file as Married Filing Jointly. Couples filing separately typically get fewer tax breaks.
If you file married filing separately, both spouses have to file the same way—either you both have to itemize or you both have to use the standard deduction.
In general, your tax rate will be higher on a married filing separately than on a joint return.
A married couple may pay less taxes by filing separately when both spouses work and earn about the same amount.
One way to find out if you should file jointly or separately with your spouse is to prepare the tax return both ways. You can check your calculations and then look at your refund or balance due from using each method.
If you are using TurboTax desktop, you can use the method in this article How can I compare Married Filing Jointly with Married Filing Separately?
Couples who file together can often more easily qualify for various tax credits, like:
When filing separate returns:
- You are often disqualified from several of the tax deductions and credits mentioned above.
- Separate filers will get a smaller IRA contribution deduction.
- Separate returns can't take the student loan interest deduction.
- The capital loss deduction limit is $1,500 each when filing separately, vs $3,000 on a joint return.
Click here for Married Filing Jointly vs Separately: How Should You and Your Spouse File Taxes?
Click here for When Married Filing Separately Will Save You Taxes
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