Deciding whether to file jointly or separately can have significant tax implications. We suggest you consider both scenarios by use the TurboTax tools at this link.
Additionally, here are some key points to consider:
Filing Jointly
- Higher Standard Deduction: For 2024, the standard deduction for married couples filing jointly is $29,200.
- Tax Benefits: Joint filers often qualify for more tax credits and deductions, such as the Earned Income Tax Credit, Child and Dependent Care Credit, and education credits
- Lower Tax Rates: Filing jointly usually results in lower tax rates compared to filing separately.
Filing Separately
- Limited Deductions and Credits: Couples filing separately generally receive fewer tax benefits and may face higher tax rates.
- Medical Expenses: If one spouse has significant medical expenses, filing separately might help meet the 7.5% threshold for medical deductions
Social Security Considerations
- Taxable Benefits: Up to 85% of Social Security benefits may be taxable depending on your combined income. For married couples filing jointly, if your combined income exceeds $44,000, a portion of your wife's Social Security benefits will be taxable
Given your income and your wife's Social Security benefits, filing jointly is likely to be more beneficial overall. However, it's always a good idea to use tax software like TurboTax to compare both scenarios and see which option results in a lower tax liability.
For more detailed information, you can check out these links:
