It depends. You do have the option to file as
either married filing jointly or married filing separately. However, married
filing jointly is usually the best option for a married couple because you get
the lowest tax rates, highest standard deduction, and the best tax
benefits. When you file married filing separately some benefits are eliminated
and others are reduced and this can have a significant effect on your tax
return. Please
refer to pages 7-8 of Pub 501 under the headings, "married filing
separately" and "special rules" for more information. https://www.irs.gov/pub/irs-pdf/p501.pdf
If you contribute to an IRA,
are interested in itemizing your deductions, or live in a community property
state, filing as married filing separately can create problems for you.
If you and/or your
spouse contribute to a Roth IRA, this can affect the total amount that you
are allowed to contribute for 2016. Please refer to page 40 of pub 590A under
the heading, "can you contribute to a Roth IRA", for additional information. https://www.irs.gov/pub/irs-pdf/p590a.pdf
If either of you are
contributing to a Traditional IRA, this can impact your eligibility to deduct
your contributions if either of you is covered by an employer sponsored
retirement plan. Please refer to page 13 of pub 590A for additional
information. https://www.irs.gov/pub/irs-pdf/p590a.pdf
If you file separately, this affects
your eligibility to choose whether to itemize your deductions or choose the
standard deduction. Please refer to pages 5-6 of pub 504. https://www.irs.gov/pub/irs-pdf/p504.pdf
If you file
separately, and you live in a community property state, there are special rules
about how you have to report income and expenses on your tax return. Please refer to pages 24- 26 of pub 504, under
the heading, "community property" for additional information if this
applies to you.
Please refer to the following
FAQ for information on how you can compare your filing status options. https://ttlc.intuit.com/replies/4775330
