Married Filing Jointly vs. Separately: Which Filing Status Is Right for You?
Marriage changes everything—including your taxes. When tax season rolls around, married couples have an important choice to make: Should you file jointly or separately? Your decision can impact how much tax you pay, the size of your refund, and your financial stability.
In this guide, we’ll explore the pros and cons of both filing statuses so you can make the best decision for your unique situation.
The Benefits of Filing Jointly
Filing jointly means you and your spouse submit a single tax return that combines your incomes, deductions, and credits. This filing status offers several advantages:
1. Higher Standard Deduction
Couples filing jointly enjoy the largest standard deduction. For example, in 2021, the standard deduction for joint filers was $25,100, significantly reducing taxable income.
2. Lower Tax Rates
Joint filers benefit from more favorable tax brackets. For instance, in 2021, the 10% tax bracket applied to the first $19,900 of taxable income for joint filers, compared to $9,950 for those filing separately.
3. Access to Key Tax Credits
Certain tax credits are only available to joint filers, such as:
4. Simplicity for Community Property States
If you live in a community property state (e.g., California, Texas, or Arizona), filing jointly can avoid the complexities and extra rules that come with separate filings.
When Filing Separately Might Be Better
While joint filing is usually more beneficial, there are certain situations where filing separately could save you money or protect your interests.
1. High Medical Expenses
You can deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI). Filing separately lowers the AGI threshold, making it easier to qualify for this deduction. For example:
2. Avoiding the Alternative Minimum Tax (AMT)
If one spouse’s income is subject to the AMT, filing separately may reduce your liability. For 2021, the AMT threshold for joint filers was $114,600, but it was only $57,300 for separate filers. Filing separately ensures only the higher-income spouse faces the AMT.
3. Protecting Yourself During Divorce
If you’re going through a divorce, filing separately can separate your tax liabilities. This prevents shared responsibility for taxes owed by your spouse.
4. Shielding Refunds from Student Loan Debt
If one spouse has defaulted on federal student loans, filing separately protects the other spouse’s tax refund from being seized to cover unpaid debt.
How to Decide: Jointly or Separately?
The best way to choose your filing status is to run the numbers both ways. Many tax software programs and professionals can help you compare scenarios to determine which option saves you the most money.
Here are some general guidelines:
Filing jointly offers most married couples greater tax benefits, but it’s not always the best choice. By understanding your financial situation and running a side-by-side comparison, you can choose the filing status that minimizes your taxes and maximizes your refund.
You can amend a separate return to file jointly, but not vice versa. Make sure to choose carefully before filing.
Separate filers lose access to several valuable tax credits, including the EITC and education credits.
Yes! It’s encouraged to compare both filing options to see which results in lower taxes.
No, but filing separately in these states can involve complex property allocation rules that may result in higher taxes.
Not always. In most cases, couples save more by filing jointly, but it depends on your income and deductions.
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