Can someone help me understand the difference between filing jointly and separately?

[tan_zhif]

I find it difficult to understand the difference between married filing jointly vs separately. As far as I understand filing jointly doubles the income bracket as well as the standard deduction. But at the end of the day isn't it just same as filing separately?

Let's say my taxable income is $10000 and my wife is also $10000, if we file jointly we pay ten percent in total which is $2000 but if we file separately we each pay $1000 now.

How is it really different than filing separately?

[Opus 17]

Sometimes that is the result of filing jointly versus separately. However, there are a number of tax deductions, credits, and other tax provisions that are disallowed or limited when filing separately. For example, the child and dependent credit is not allowed when filing separately, nor is the student loan interest deduction. Filing separately also changes the income threshold for making deductible IRA contributions or Roth IRA contributions.  If one or both spouses are taking Social Security, filing separately drastically increases the amount of Social Security income subject to tax.  

from my own experience, several years ago, my wife and I got a larger refund from New York State by filing separately even though we paid extra federal income tax. This was due to the way that New York State assigns tax brackets differently from the federal government.  

in any particular situation, the only way to know for sure is to try it both ways. But almost all the time, filing jointly is the same or better than filing separately.

[VolvoGirl]

Here's some things to consider about filing separately……

In the first place you each have to file a separate return, so that's two returns.  And if you are using the Online version that means using 2 accounts and paying the fees twice.  

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!  And if you are in a Community Property state it can be complicated to figure out.

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-...