You might automatically assume that once you get married you should file taxes jointly. But that’s not always the case. The tax-advantaged answer depends on your individual tax situation.

What is the difference?

Married filing jointly- combining incomes and expenses on one tax return

Married filing separately- each spouse files their own return, reporting only their individual income and deductions

What are the benefits of married filing jointly?

Combining incomes and expenses can move some money into a lower tax bracket, so in many cases, filing jointly offers the greatest savings, especially if the spouses have different income levels.

Additionally, some tax benefits are only available if you file jointly such as:

• Child and dependent care credit
• Adoption expense credit
• American Opportunity Tax Credit
• Lifetime learning credit

If your provisional income is $32,000 or less, social security benefits are tax-free on a joint return, while you likely will pay tax on social security benefits at any income level if married filing separately.

What are the benefits of married filing separately?

There are certain circumstances that might warrant filing separately. This includes:

• If one spouse has significant medical expenses, for example, filing separately might be beneficial. This is because medical expenses are deductible only if they exceed 7.5% of your adjusted gross income (AGI). A lower separate AGI might allow for a larger deduction.
• If your student loan repayment plan is based on the income listed on your tax return, you can keep your payments more manageable by filing separately.
• If you wish to limit your liability related to your spouse’s tax matters, filing separately is the answer. In addition, couples may prefer to keep their financial matters separate, especially in cases where they each have children from prior marriages or are preparing for divorce.

Sometimes state income taxes will be significantly reduced by using the married filing separate status. If the state requires the same filing status as your federal filing status, an analysis should be prepared to see the overall benefits. One example of this may be the new Massachusetts Millionaires tax - see our blog - Massachusetts Millionaires Tax FAQs Updated for 2024 - for more information on this.

FAQS/Things to keep in mind:

• Can I use married filing statuses if my spouse and I are living apart but not legally separated?
  • Yes. Until you get a final decree of divorce or separate maintenance, the IRS considers you married for filing purposes.
• What filing status do I use if my spouse passed away during the tax year?
  • If you have not remarried, you can still file a joint return for that year.
• Is married filing separately the same as filing single?
  • No, when you are married, you no longer have the single filing option. The IRS follows strict rules when it comes to this.
• Can you amend a past filing status?
  • Yes. You can amend a past return within three years from the due date of the original return if you want to change your filing status from married filing separate to married filing joint. However, you only have until the original filing deadline to amend from married filing joint to married filing separate.