I am married and currently file jointly with 2 kids under 18 yrs old and we both are W2 employees.
When should you file separate vs jointly?
please state the benefits of filing separate and filing jointly.
thank you
Married Filing jointly is most times better. You get a bigger deduction and certain credits are not available when you file Married Filing Separately.
This Turbo Tax link has great information available to make this decision and gives you the benefits for both: https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separately/L7gyjnqyM?srsltid=AfmBOopGqCNexowW0pYgvsf7ycIkrx4VjO_63UXv6vSnfu3UEGQiKQTh
It is usually better to file Joint. Joint has the lowest tax rates and the highest Standard Deduction. And if you are in a Community Property state MFS gets tricky to figure out. See,
https://ttlc.intuit.com/community/married/help/married-filing-separately-in-community-property-states/01/26030
Here's some things to consider about filing separately……
In the first place you each have to file a separate return, so that's two returns. And if you are using the Online version that means using 2 accounts and paying the fees twice.
Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong. If one person itemizes deductions then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!
And there are several credits you can't take when filing separately, like the
EITC Earned Income Tax Credit
Child Care Credit
Educational Deductions and Credits
And contributions to IRA and ROTH IRA are limited when you file MFS.