Recently I am considering filing our tax separately, but I got confused with some articles from turbotax website.
One of the article from turbotax (https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-[product key removed]ly-or-...) mentioned that "The standard deduction for separate filers is far lower than that offered to joint filers. In 2020, married filing separately taxpayers only receive a standard deduction of $12,400 compared to the $24,800 offered to those who filed jointly. " I am totally confused. To me, it seems they are the same. From the family perspective, filing separately, each one will get $12,400 deduction, so add together it's still $24,800 which equal to the $24,800 deduction when filing jointly.
Another turbotax article (https://turbotax.intuit.com/tax-tips/marriage/when-married-filing-separately-will-save-you-taxes/L7F...) mentioned that "A couple may pay the IRS less by filing separately when both spouses work and earn about the same amount.When they compare the tax due amount under both joint and separate filing statuses, they may discover that combining their earnings puts them into a higher tax bracket." But when I look at the tax bracket, the number of filling jointly is 2x the number of filling separately. So again, I can not find any difference filling jointly or separately. If spouse with similar income located in one bracket when filing separately, they will fall into the same tax bracket when filing jointly.
Did I missed something in the calculation ?
thanks
Married Filing Jointly or Qualifying Widow (Widower)
If taxable income is over— | but not over— | the tax is: |
$0 | $19,400 | 10% of the amount over $0 |
$19,400 | $78,950 | $1,940 plus 12% of the amount over $19,400 |
$78,950 | $168,400 | $9,086 plus 22% of the amount over $78,950 |
$168,400 | $321,450 | $28,765 plus 24% of the amount over $168,400 |
$321,450 | $408,200 | $65,497 plus 32% of the amount over $321,450 |
$408,200 | $612,350 | $93,257 plus 35% of the amount over $408,200 |
$612,350 | no limit | $164,709 plus 37 % of the amount over $612,350 |
Married Filing Separately
If taxable income is over— | but not over— | the tax is: |
$0 | $9,700 | 10% of the amount over $0 |
$9,700 | $39,475 | $970 plus 12% of the amount over $9,700 |
$39,475 | $84,200 | $4,543 plus 22% of the amount over $39,475 |
$84,200 | $160,725 | $14382.50 plus 24% of the amount over $84,200 |
$160,725 | $204,100 | $32,748.50 plus 32% of the amount over $160,725 |
$204,100 | $306,175 | $46,628.50 plus 35% of the amount over $204,100 |
$306,175 | no limit | $82,354.75 plus 37% of the amount over $306,175 |
