Married couples have the option of filing their tax returns as married filing jointly or married filing separately. When you file jointly, both of your incomes are combined. When you file separately, you file two separate tax returns with each of your incomes filed separately. Federal Financial Aid requires that you report both spouses’ income, regardless of your filing methods. So this means that if you filed separately, you must still report your income and your spouse’s income on your FAFSA.
In addition, taxpayers who file separate tax returns are ineligible for education tax deductions and credits. So if you file a separate return you will not be eligible for the student loan interest deduction, the Hope Scholarship and Lifetime Learning tax credits.
