Short term gains and losses - married filing jointly

[Alt-p]

Hi,

I am wondering if I could do my taxes married filing separately this year and married filing jointly next year. We are concerned as my wife had huge short term losses but they would spread over years, so we were wondering if we do the taxes married filing jointly next year, can we carryover that short term losses and offset our income next year. 

But if I combine with them with my gains this year and file jointly we have a net gain and don't have to deduct the losses from our income over the years.

Could you please let us know what our options could be. Really appreciate your insight

[Carl]

You can file joint or separate every year. It's your choice. Be aware of the following.

When a married couple files separate returns, they "BOTH" automatically disqualify for a number of tax deductions and credits.

 - No Earned Income Credit

 - No education credits.

 - Things like the maximum mortgage interest deduction is cut in half for each tax filer.

 - Any social security income "may" become fully taxable.

Now that's just a tiny smidgen of the things you will both potentially use. I would recommend you complete your taxes both ways to see which way "really" gives you the better result. While it's not unheard of, it is not common for a married couple to come out better by filing separate returns. So that's why I advise you check it both ways before you file anything.