Hello, I have the return ready to file, and wonder if in our case filling separate will be a better option? Is this something you can help me with?

[xmasbaby0]

It is not easy to compare MFJ to MFS using online TT but you can do it.  Since you only get one return for each account and user ID, you have to use 3 accounts and user ID’s—one for MFJ and two for each of the MFS returns.  Compare, choose, and file—and pay—accordingly.

It is much easier to do this comparison using the desktop version of TT installed from a CD or downloaded to your own computer.  You pay once for the software and you can prepare multiple returns easily, and it has a “what if” feature that allows comparisons.

WHAT IF…?

If you are using Desktop software:

• With your return open, click Forms in the upper-right-hand corner
• Click Open Form
• In the Search area, type the word what. You should see the What If Worksheet listed, click to open it.

  If you were legally married at the end of 2025 your filing choices are married filing jointly or married filing separately when you prepare your 2025 return.

  Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $31,500 (+ $1600 for each spouse 65 or older)  for 2025. You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

  If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return.

   Some of the disadvantages of filing separately include: 

  You cannot get earned income credit, 

  You cannot get education credits or deductions for student loan interest. 

  You cannot get the childcare credit

  You have a lower amount of income on which to base the refundable additional child tax credit

  85% of your Social Security benefits will be taxable even with no other income 

  The amount you can contribute to a retirement account will be limited.

  Capital loss deduction is less than if you file jointly

  You cannot get the $6000 senior deduction

  You cannot get the deductions for overtime or tips

   If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI) and your returns become very complicated.

   If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice since with online, you get one return per fee.

  https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separ...

  https://ttlc.intuit.com/turbotax-support/en-us/help-article/income/getting-married-mean-taxes/L2Rgma...

  https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/married-filing-separately-commu...

[LindaS5247]

As xmasbaby0 mentions above, it is usually most advantageous to file as Married Filing Jointly. Couples filing separately typically get fewer tax breaks.

If you file married filing separately, both spouses have to file the same way—either you both have to itemize or you both have to  use the standard deduction.

In general, your tax rate will be higher on a married filing separately  than on a joint return.

A married couple may pay less taxes by filing separately when both spouses work and earn about the same amount.

One way to find out if you should file jointly or separately with your spouse is to prepare the tax return both ways. You can check your calculations and then look at your refund or  balance due from using each method. 

If you are using TurboTax desktop, you can use the method in this article How can I compare Married Filing Jointly with Married Filing Separately?

Couples who file together can often more easily qualify for various tax credits, like:

• Earned Income Credit
• American Opportunity and Lifetime Learning Education Tax Credits
• Exclusion or credit for adoption expenses
• Child and Dependent Care Credit

When filing separate returns:

• You are often disqualified from several of the tax deductions and credits mentioned above.
• Separate filers will get a smaller IRA contribution deduction.
• Separate returns can't take the student loan interest deduction.
• The capital loss deduction limit is $1,500 each when filing separately, vs $3,000 on a joint return.

Click here for Married Filing Jointly vs Separately: How Should You and Your Spouse File Taxes?

 Click here for When Married Filing Separately Will Save You Taxes

Please return to Community if you have any additional information or questions and we would be happy to help.