Is it worthwhile to look into filing seperately if my wife and I had vastly different 2020s? I grossed 23k and she grossed 597k. What factors would be involved?

[Wolfgangerl]

Meaning, what factors might influence filing one way or the other. I'm self-employed with lots of deductions, she has the one W2 and that's it.

[xmasbaby0]

Do not confuse the fact that one of you has business expenses to enter on a Schedule C with entering itemized deductions-----they are not the same thing at all.    Itemized deductions go on a Schedule A for either spouse who enters them.

If you were legally married at the end of 2020 your filing choices are married filing jointly or married filing separately.

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 $24,800 (+$1300 for each spouse 65 or older)  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 special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. 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)

If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...

[DanielV01]

Chances are that if you are filing jointly, the tax brackets will be more favorable.  This is especially true because of (not inspite of) the income discrepancy between the two of you.  As @xmasbaby0 mentions, business deductions and itemized (or standard) deductions are not the same thing.  From a tax standpoint, you are virtually certain to pay less combined tax using the status of married filing joint.  However, there well may be other considerations that may bear on your decision as to whether filing jointly or separately is best for you.

[Wolfgangerl]

Thank you so much for the response. I'm going forward as jointly.

[Wolfgangerl]

And thank you too for the response. Filing jointly will be the way to go.