File joint or separate?

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When one spouse is filing married but separate how does that effect the tax credits?

DoninGA

Level 15

See this TurboTax support FAQ for filing jointly versus separately - https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/better-married-couple-file-jointly-separately/L338QHg8G_US_en_US?uid=ltq1mh0e

Karenhawks1Author

Level 2

As a follow up to the above question. One spouse is on Social Security income with no taxes taken out, while the other is employed as W2. If the filing is "joint" not enough taxes have been paid in and we owe money. Doesn't it make sense to have the employed spouse file separately and take the deductions?

DoninGA

Level 15

@Karenhawks1 wrote:

As a follow up to the above question. One spouse is on Social Security income with no taxes taken out, while the other is employed as W2. If the filing is "joint" not enough taxes have been paid in and we owe money. Doesn't it make sense to have the employed spouse file separately and take the deductions?

You would have to complete two tax returns as Married Filing Separately to see the actual amount of taxes owed when filing Separately versus Jointly.

When filing separately and only SS benefits are being reported then the SS benefit amount over $13,850 or $15,350 if age 65 or older, becomes taxable income.

The Standard Deduction for filing jointly is $27,700 if both spouses are under age 65. When filing separately the Standard Deduction is $13,850 if under age 65.