File joint or separate?

[Karenhawks1]

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

[DoninGA]

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-join...

[Karenhawks1]

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]

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@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?

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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.

[MarilynG1]

If one spouse  receives only Social Security and files separately, up to 85% of their Social Security can be taxable income, so they will probably still owe tax, whether filing separately or jointly.

You can have tax withheld on Social Security during the year so that you don't owe at tax time, and can still file jointly.

Here's more detailed info on Social Security and Taxes.

@Karenhawks1