Marriage Couple Filing Taxes Separately or Jointly: What Are The Pros And Cons

Every year, married couples have the option of filing their taxes jointly or separately. Although the tax rules favors joint returns in general, there are some circumstances in which filing separately makes sense, according to experts. If you and your spouse file separately rather than jointly, you each have your own filings with your own individual income, credits, and deductions.

Almost 95% of married couples who file taxes do so together, but couples should do the math to determine which option is most advantageous. The choice that is made is influenced by a number of things.

Your monthly payment under an income-based repayment plan is determined by your adjusted gross income, which is often larger when you file your taxes jointly. It’s a situation where filing separately would make sense. And somehow, you must consider the additional drawbacks of filing apart.

The standard deduction for married couples filing jointly in 2022 is $25,900, which makes it challenging to claim tax benefits for things like medical costs, charitable contributions, state and local taxes, and more. Nonetheless, the $12,950 standard deduction for separate filers is simpler to exceed. Filing separately can make sense if the combined itemized deductions of both spouses are sizable and yet fall below $25,900, base on the article published by CNBC on February 21, 2023,

Nevertheless, there is a restriction: You cannot mix and combine. On their own tax forms, each spouse must itemize or accept the standard deduction, which might not offer the same advantages.

Although filing separately could appear preferable in some circumstances, there are other trade-offs to consider. For instance, because the modified adjusted gross income cap is $10,000, separate filers normally aren’t permitted to make Roth IRA contributions.