Joint or Separate Filing

[dwilsondj]

My wife and I got married on 12/31/23 and wondering if its more beneficial to file jointly or separate. Will one of be able to take advantage of the family tax credit if separate? Thanks

[MayaD]

Generally, filing jointly will give you a bigger refund or less taxes due. You can compare your estimated taxes for filing jointly vs. separately with TaxCaster.

When you file separately, your tax rate is higher and you won't be able to claim:

• Education benefits
• Earned Income Credit (EIC) (usually)
• Child and Dependent Care Credit (usually)
• Adoption Credit (usually)
• Premium Tax Credit (usually)
• The standard deduction if your spouse is claiming itemized deductions
• The full benefit for itemized deductions, the Child Tax Credit, and capital losses (you'll get only half compared to married filing jointly)

If you file separately and live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you have to deal with community property allocations and adjustments, which adds extra work and complexity to your taxes.

For more information check: Is it better for a married couple to file jointly or separately?