Married couples have two options when it comes to filing their taxes- they can file them jointly or separately. While the vast majority
of married couples choose to file jointly, that’s not always the right
decision. Sometimes and in certain situations, you and your spouse can actually
save more money by choosing to file separately; however, this really should be
decided on a case by case basis. With that said, though, there are a few tips
that can let you know which filing method will likely be the most beneficial
for you and your spouse.
Filing Jointly
Generally, you and spouse should be filing jointly if you
have children together. You’ll miss out on childcare credits, student loan
deductions, and other child-related exceptions if you file separately.
You’ll also want to file jointly if one spouse has a much
larger income than the other or has the only income. When you are in this
situation and you file jointly, you’ll enjoy more deductions and credits, which
benefits both of you!
Filing Separately
Though it’s not the most popular option, there really are a
variety of situations in which filing separately is in your best interest.
Typically, for example, if one spouse has very high deductible expenses, it’s
best to file separately since that spouse can enjoy more deductions off those
expenses than he would if they were combined with his spouse’s.
It’s also a good idea to file separately if you both earn
the same or almost the same amount so you can (hopefully) avoid being bounced
into a higher tax bracket and thus a higher tax rate.
Sadly, it’s also a good idea to file separately if you and
your spouse are considering divorcing soon and/or if, for some reason, you
don’t trust your spouse or don’t want to be involved in his or her financial
dealings.
In spite of these tips, it’s important to remember that they
are only generalized tips. Every situation is unique, which is why it’s always
in your best interest to seek counsel from a tax advisor before you file either
way.
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