When I inputed my information, my total refund was going to be around $6,000. After I added my wife's information, it dropped down to around $2,700. How is that possible?

[thomas-waszaj]

Should we file separately instead?

[AnthonyC]

This is normal.  When you are married filing jointly, the IRS allows you to take a standard deduction of $12,600 and two personal exemptions totaling $8,100.  When you entered only your information, you were getting the benefit of having over $20,000 in deductions right off the bat on just your income.  Of course, once you entered your wife's income, more of her income was actually taxed because the deductions are already being accounted in the return.  If you were to file separate, then you would each only get half of those deductions and certain credits/deductions are not allowed to those who file separately, which is why most of the time it is better to file jointly.  I have included a link below that breaks down some of the pros and cons of MFJ vs. MFS.

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