Benefits of Filing Tax as Married, Joint or Separate
When married, you have two options for filing your income taxes -- "married filing jointly" or "married filing separately." Each has its advantages and drawbacks. The Internal Revenue Service recommends that you calculate your taxes both ways and then use the method that results in the lower tax bill.
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Filing Jointly
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You can file your taxes jointly as long as both spouses agree to file a joint tax return. Both spouse's incomes and deductions will be combined. Each spouse will be liable for the other's taxes reported on that year's return.
Filing Separately
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If you are married but want to pay only your own individual taxes, you can file separately. This filing status may also be appropriate if you and your spouse have higher incomes or a large amount of itemized deductions.
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Lower Taxes
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In most cases, "married filing jointly" results in lower taxes. A couple is allowed a larger standard deduction. Additionally, many credits, such as child-care expense credits and education credits are permitted on a joint return, usually resulting in a lower tax liability.
Responsibility
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One advantage of filing separately is that the Internal Revenue Service cannot hold the other spouse responsible for any taxes or penalties owed on that particular tax return. If there are doubts about your spouse's tax liabilities, or if you are separated from your spouse, then filing separately might be in your best interest, even if it means you pay higher taxes.
Reasons to File Separately
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You should file separately if one spouse has a large amount of unreimbursed medical expenses, defaulted on child support or student loans, takes high risks in tax-reporting methods or has specific itemized deductions that the other spouse does not need or use, USA Today advises.
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