Partner's income is way higher than mine, should we file separately?

[Anonymous]

Hi! I'm self employed and make about 30K, on the other hand, my partner a bit over 200k. We married this year (2022), this is the first time filing as married, should we file our taxes separately or jointly? 

P.D. Partner pays about 35% in taxes, myself about 5% since I'm self employed.

[marctu]

First of all congratulations.   The IRS strongly encourages most couples to file joint tax returns by extending several tax breaks to those who file together, including the Earned Income Tax Credit, the American Opportunity and Lifetime Learning Education Tax Credits, the exclusion or credit for adoption expenses, and the child and dependent care tax credit.

In the vast majority of cases, it's best for married couples to file jointly, but there may be a few instances when it's better to submit separate returns. The best way to find out is to prepare the return using married filed jointly and separately. 

Based upon the income disparity in your question, Married Filing Jointly would appear to be to your combined benefit.  This is due to the fact that when you combine your income together more of your husband's income is taxed in a lower marginal tax bracket.  

[VolvoGirl]

If you are self employed you are paying 15% self employment tax plus any regular income tax on a net profit of $400 or more.  So I don't understand why you say you pay only 5%.  Have you been filing Schedule C for your self employment?  Is the 30K your Net Profit or gross income?  

You should usually file a Joint return which is only 1 return combined for the both of you. 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. Make sure to stick with this one account for the future. Just ignore the other spouse's account.

Getting Married FAQ
https://ttlc.intuit.com/community/tax-filing-status/help/what-does-getting-married-mean-for-my-taxes...

Tax info on getting married
https://turbotax.intuit.com/tax-tips/marriage/getting-married/L0DvEUlEC

Unless you have a specific reason to file separate returns,

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. 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.

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

See …….
https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-...