Married filing jointly vs married filing separately

[Carolineling2020]

Hello, my husband's salary is more than doubled of mine. In the past few years, I've been filing jointly with him and we have to pay lots of tax when we file our tax return. We are low middle class people and it doesn't make sense to me. This year, I used turbo tax and create three tax return, one is family joint, one is his (married filing separately), one is mine (married filing separately). I thought family jointly will benefit us, but it turns out, we have to pay even $1K more than he is filing by himself as married filing separately. Not adding I am getting the refund. I know I'm getting some unpaid stimulus check credit because I won't get it because I filed our tax jointly in the past few years which make us not qualified. But even for himself, filing separately is resulting less tax payment which makes me question why people keep talking filing jointly is better than separately?

[xmasbaby0]

We cannot see the returns you prepared so we do not know if you followed all of the rules.   When you file separate returns you both have to file the same way-----either you both itemize or you both use standard deduction---not one of each.

If you were legally married at the end of 2021 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 $25,100 (+$1350 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...

[VolvoGirl]

Married filing Separate could be better but usually it's not.   Did you use the online version and use 3 different accounts?   You just can't use the same account and change it to try to compare them.   Or do you have the Desktop program?

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-...

[Carolineling2020]

Thanks Xmasbaby0!

Yes, both of us using the standard deduction. 

I claim no dependents for my kids and he claim the kids for dependent credits. both of us don't have education credits and earned income credit.

Both of our tax are simple which don't have any earned income credit, education credits, adoption credits, or deductions for student loan interest. That's why except he claimed dependent credits, we file separately jointly won't give us any much benefit, it will only makes it worse. Because I can be taxed on lower bracket if filed separately. If we filed jointly, I have to be taxed on higher rate which doesn't make sense. 

[Carolineling2020]

Thanks Vovogirl!

Yes, I used desktop program. I also created three tax return documents. Before you submit, I think you can create as many you want until you file your return. I was trying to delete some returns that I created wrong and couldn't figure it out how to delete yet. But anyway, I have three separate tax return documents: one is joint, two separate - mine and my husband. 

As I replied above, both of our tax returns are simple without any other credits and deductions.