I made $115k in self-employment with a taxable income of over $95k after business expenses. My wife only made $15k (1099). Should we file separately? Thx!

[JimSinc]

I made $115k in self-employment with a taxable income of over $95k after business expenses. My wife only made $15k (1099). Should we file separately? Thx!

[VolvoGirl]

That shouldn't matter.  Joint should still be the way to file.  

Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong.  If one person itemizes deductions on Schedule A then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!  (Business expenses are not itemized deductions.  Business goes on Schedule C not A.)

And there are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

And contributions to IRA and ROTH IRA are limited when you file MFS.

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

See …….

https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-...