Happily Married? You May Still Want to File Taxes Separately

For example, separate filers typically can’t make Roth individual retirement account contributions because the modified adjusted gross income limit is $10,000. Some couples, whether they’re happily married or planning for divorce, prefer to keep their finances and their share of taxes separate, Wilson said. Run the numbers—taking into consideration all of the pieces https://turbo-tax.org/ of your financial pictures—to see if it makes sense for you. If you have questions about how filing could impact your student loans or your retirement, ask your tax professional before ticking a box. Most taxpayers will continue to file MFJ, but that doesn’t mean that it’s the right choice for you. And keep in mind that the answer can change from year to year.

You can print your return from your eFile.com account and mail it to the IRS. Include a cover letter with your tax return and explain why the SSN and/or date of birth for the spouse are missing. If you and your spouse have very different incomes and very different expenses, it might be worth filing separately.

What are the potential cons of filing your tax returns separately?

It’s important to understand the married filing separately rules, so you should consult a tax professional about your specific circumstances. One of the best ways to figure out whether filing separately or jointly is best for you is to prepare your tax return both ways and look at which method results in the lowest tax liability. If you use tax software to prepare your tax return, many of today’s products will perform this calculation for you and provide a recommendation. Following are the tax rates for married individuals filing jointly or separately. When choosing the married filing separately, keep in mind that there are a few rules you must follow.

The standard deduction, which is $12,200 for single filers, is $24,400 for a married couple — double. Marriage also doubles the amount you can contribute to an IRA, 401(k) or other tax-advantaged retirement savings plan. Depending upon your circumstances, you may also want to look at your tax status from the standpoint of tax liability and transparency. When one spouse believes that the other may have hidden their tax liability or income, it may be best to file separately. While there are significant advantages to filing jointly, there are some potential benefits to filing your taxes separately. Married couples often find that filing jointly makes sense financially.

Overview of Married Filing Separately

Nonetheless, in the right circumstances, being married and filing separately could save you money. Here are a few things to think about if you’re considering whether it’s right for you. Read about our income tax services and schedule a free consultation today.

After getting married, you’re not able to file as single again unless you are legally separated or divorced, or until the tax year following a spouse’s death. While “married filing jointly” involves a single return, “married filing separately” means you and your spouse have your own filings with individual income, credits and deductions. Tax credits are like gift cards from the IRS—they apply to your final tax bill and reduce it dollar-per-dollar. Call it a late wedding present (or an anniversary gift), but the IRS gives more tax credits to married couples filing jointly than to couples filing separately.

Married filing jointly

In most cases, it is more tax advantageous for a married couple to file a joint tax return than a married filing separate return. A return with a married filing joint status means that both spouses are responsible for the income reported and/or taxes owed. Also, if there are unpaid taxes or child support, a refund could be offset (or reduced) by the IRS, regardless of which spouse is responsible for the debt. See the Tax Tip above regarding Innocent Spouse Relief or Injured Spouse Allocation you can file with your return if you are concerned about this. However, there are good reasons when you should use the married filing separate status as it might be more beneficial to your specific tax situation.

• You’ll be disqualified from claiming many tax deductions and credits as well.
• The pandemic exacerbated interest in filing separately since, for some couples, the math occasionally worked out to provide additional benefits (like stimulus checks) for couples who file separately.
• You can file either as married filing jointly or married filing separately, starting in the tax year during which you got hitched (with a filing deadline in April the next calendar year).
• If they earn more than $198,000 ($204,000 in 2022), the contribution amount begins to phase out.

For example, if one of you itemizes deductions on Schedule A instead of taking the standard deduction, both of you will have to itemize deductions. And you’ll have to decide who gets which deductions, which can get complicated if you want to deduct your mortgage interest, for example. You’re not responsible for any tax, penalties or interest that might result from each other’s returns. If you have large itemized deductions on the other hand, it may make more sense to file separately to maximize your allowable deductions.

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Filing separately is one way to limit your liability if you don’t trust your spouse. Perhaps your spouse has outstanding debts, such as back taxes or past-due child support, and you don’t want your refund to be seized to pay them. There are times when you must file separately https://turbo-tax.org/should-you-and-your-spouse-file-taxes-jointly-or/ while you’re married, and others when it might simply make the most sense for your personal situation. If they didn’t realize they had to use the same method and her itemized totals are less than $500, it will result in a loss of $5,850 or more below the standard deduction.