File jointly or seperate

[Will C1999]

We recently got married and was curious as to if it would be better to file jointly or separate. This is due in fact to her taxes normally having many credits or exceptions due to the GA "Hope" scholarship and a number of other school related items.   

[Katherine S 63]

Thanks for the great question,

Many people ask this question.  Typically it is best to file Married Filing Jointly.  

1. Easier to file: you only have to do one return compared to two separate returns.  When doing two returns it can get compliated and will cost you more in the long run possibly.  If filing Married filing Separately, it is best to use Turbotax Desktop because you can file up to 5 returns using that software. Here is the link to purchase Turbotax Desktop:  https://turbotax.intuit.com/personal-taxes/cd-download/
2. There are some credits that you can not take if you are filing separately.  
   1. Earned Income Tax Credit
   2. American Opportunity and Lifetime Learning Education Tax Credits
   3. Exclusion or credit for adoption expenses
   4. Child and Dependent Care Credit
3.  There are other issues with filing separately:  
   1. In 2023, Married Filing Separately taxpayers only receive a Standard Deduction of $13,850 compared to the $27,700 offered to those who filed jointly.
   2. If you file a separate return from your spouse, you are often automatically disqualified from several of the tax deductions and credits mentioned earlier.
   3. Additionally, separate filers are usually limited to a smaller IRA contribution deduction.
   4. They also can't take the deduction for student loan interest.
   5. The capital loss deduction limit is $1,500 each when filing separately, instead of $3,000 on a joint return.

Here is a link that talks more indepth about Married Filing Jointly vs Married Filing Separately.  I suggest you read this over.  https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separ...

Sometime, when one spouse has student loans, it is best to file Separately so that the loan payments are lowered.  

As far as the GA Hope Scholarship, that appears to not be limited by income or married filing jointly.  

There is information on the eligibility requirements:  https://www.gafutures.org/hope-state-aid-programs/hope-zell-miller-grants/hope-grant/eligibility

To sum this up, you might want to get Turbotax Desktop so that you can see what is best in your particular situation.  You can enter one return as Married Filing Jointly and then two as Married Filing Separately and see what the final numbers come out as to determine what works best for your situation.

Please give me a thumbs up if this was helpful.

Katie S.