Video: Should a Married Couple File Jointly or Separately?
If you are married and deciding whether it's beneficial to file a joint tax return with your spouse, there are certainly issues you should consider first. Watch this video to learn more about how you should file as a married couple.
Video transcript:
Wondering if you should file jointly or separately? Here’s what you need to know on this edition of Tax Tips by TurboTax!
If you’re married, you may have heard that you can file your taxes jointly or separately. So, which is better for you and your spouse? Let’s break it down.
In most cases, filing jointly will save you the most money. That’s because when filing jointly, each tax bracket covers a higher range of taxable income than when married filing separately.
This means that often more of your income can be taxed at lower rates, often resulting in a lower tax bill than you’d get by filing separately.
The greater the difference in income between spouses, the more tax you might be able to save by filing jointly. When filing jointly, your incomes are combined. By combining your incomes, the lower income can help pull the higher income down into the lower tax bracket.
However, there are a few situations where it might make sense to file separately. For example, if you or your spouse paid a large medical bill during the tax year, filing separate returns could help you write off those medical expenses – or more of them – as an itemized deduction.
That’s because you can only deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income, or AGI. By filing separate returns, the AGI reported on each spouse’s return will be lower, which will make it easier for your qualified medical expenses to exceed the AGI threshold.
Note that different rules may apply if you live in a community property state. Plus, if one spouse itemizes, then the other spouse will also have to itemize on their separate return.
If you’re unsure about which filing status is best for you and your spouse, TurboTax asks you simple questions and makes it easy to choose the right option to maximize your tax benefits.
Visit turbotax.com for more info to help you file your taxes with confidence!
With TurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted.
And if you want to file your own taxes, TurboTax will guide you step by step so you can feel confident they'll be done right. No matter which way you file, we guarantee 100% accuracy and your maximum refund.
Get started now by logging into TurboTax and file with confidence.