Married Filing Separately Vs. Jointly: What’s Right For You?

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Marriage comes with a lot of big decisions, and one of those choices includes choosing a new filing status. Some couples may find it advantageous to file jointly, while others will consider filing separately if they have a large number of expenses or miscellaneous itemized deductions.  

The choice is entirely dependent on your financial circumstances as individuals. However, the IRS strongly encourages couples to file jointly since filing together allows you to qualify for certain tax breaks and a larger standard deduction. This article will provide several factors to consider and realistic scenarios to help you decide if it’s better to file jointly or separately. 

Filing jointly vs separately: Quick comparison 

Deciding to file jointly is an important decision that involves numerous factors which we’ll cover in depth in this article. But here are some of the key differences between the two filing statuses. 

  • Credits and deductions: By combining taxable incomes, couples filing jointly can typically claim more credits and deductions than couples filing separately. 
  • Tax liability: Couples filing jointly are held responsible for their spouse’s tax liability, whereas couples filing separately are not. 
  • Tax brackets: When you choose to file jointly, you’ll notice that there are larger margins between tax brackets, as opposed to filing separately. Because of this, you may notice that combining your taxable income with your spouse puts you in a lower tax bracket.  

What are the benefits of being married and filing jointly? 

When couples file jointly, they combine their income, deductions, and credits on one tax return with the same tax rate. Couples who choose to file jointly are both responsible for any taxes due or penalties incurred. If there is no tax liability and the credits claimed result in a refund, the couple will receive one joint tax refund.   

There are many advantages to filing a joint tax return. Joint filers receive one of the largest standard deductions each year, meaning couples can deduct a significant amount of income when calculating taxable income.  

Additionally, couples filing jointly are more likely to be eligible to claim the following credits and deductions: 

Who can file jointly? 

All legally married couples can choose to file jointly, even if one spouse has no taxable income or deductions. To do so, you must have been legally married by the last day of the tax year. So, if you got married on December 31, you’d still be eligible to file jointly for that tax year. 

Likewise, if your divorce becomes final on the last day of the tax year, you’d be considered unmarried for that tax year. If you’re currently going through divorce litigation, and your divorce isn’t finalized before the end of the year, then you’d be considered married for that tax year. 

If your spouse passed away in 2023, you can still file jointly for that year. This rule also applies if both spouses pass away during the tax year. In the event that this does happen, a personal or court-appointed representative will be responsible for filing the deceased couple’s tax return for that year. 

What are the benefits of being married and filing separately? 

When couples file separately, each spouse is responsible for their own tax debt and any penalties incurred. Like filing as single or head of household, each spouse gets their own refund.  

There are several situations when filing separately can benefit you. For starters, you may consider filing separately if it places you in a lower tax bracket, meaning your income will be taxed at a lower rate. See this year’s tax brackets to see the details for each filing status. 

Some other reasons you may consider filing separately include:  

  • If one spouse has a substantial medical expense   
  • If one person doesn’t want to be liable for the other’s taxes   
  • If one spouse is unwilling or unable to consent to file a joint tax return   
  • If the spouses are separated but not divorced and they wish to keep their finances separate   
  • If one spouse has a significant itemized deduction 

Who can file separately? 

Married couples who choose to file their tax returns separately must be legally married to use this filing status. If you’re legally separated from your spouse under a decree of separate maintenance, the IRS considers you unmarried. So, you can choose the single or head of household filing statuses, but not married filing separately.  

What are the downsides of filing separately vs. jointly? 

There are some factors to consider when deciding to file jointly or separately. Feel free to discuss these potential cons with your spouse: 

  • For tax year 2023, taxpayers who file separately can claim a standard deduction of $13,850, compared to $27,700 when filing jointly.  
  • If you and your spouse choose to file separately, you’re unable to claim the tax credits and deductions mentioned above (this includes the student loan interest deduction). 
  • If you and your spouse file separately and one of you itemizes deductions, the other spouse cannot claim the standard deduction. 
  • The capital loss tax deduction is limited to $1,500 for each filer (assuming you’re filing separately), instead of $3,000 on a joint return. 
  • Separate filers are limited to a smaller IRA contribution.  

There aren’t penalties for filing separately, but you should be aware of the marriage penalty if you choose to file jointly. Couples who file jointly can be subject to the marriage penalty when factors like combined incomes, income disparity, and the number of dependents result in tax liability. The marriage penalty does not apply to federal tax returns, just the following states: 

  • California 
  • Georgia 
  • Maryland 
  • Minnesota 
  • New Mexico 
  • New Jersey 
  • New York 
  • North Dakota 
  • Ohio 
  • Oklahoma 
  • Rhode Island 
  • South Carolina 
  • Vermont 
  • Virginia 
  • Wisconsin 

For more information on the marriage penalty, visit your state’s department of revenue website. 

When to consider filing separately as a married couple 

You may be wondering why some couples may choose to file taxes separately, rather than together. The answer depends on your financial circumstances as individuals, but we’ve detailed some common scenarios when couples sometimes file separately. 

  • Income-driven student loan repayment plans – Now that federal student loan payments have resumed, your individual debts and repayment plans become a factor in choosing your filing status. Filing jointly typically increases a couple’s adjusted gross income, meaning student loan payments would increase too.  
  • Differences in finances – Some couples prefer to keep their finances and tax bills separate. This makes sense if your partner is a business owner who makes quarterly estimated payments, but you have taxes withheld from your paychecks.  
  • Taking the standard deduction vs. itemizing deductions– The current standard deduction for joint filers is $27,700. This is difficult to exceed if you’re planning on itemizing deductions. Since the standard deduction for separate filers is $13,850, some taxpayers may want to itemize deductions to claim tax breaks for medical expenses, mortgage payments, and more.  

Another one of the most important considerations when deciding to file jointly or separately is whether both spouses agree to handle miscalculations or unpaid taxes on a joint return. In the event that you do decide to file jointly and you unknowingly take on your spouse’s debts, the IRS provides some assistance.  

Injured spouse relief lets you reclaim some of the tax refund that was applied to your spouse’s debts, and innocent spouse relief can prevent you from having to pay additional taxes if there was a mistake on your tax return that you were unaware of. For more information, visit the IRS website. 

TaxSlayer can maximize your refund, we’ll even do all the calculations for you, walking you through each step to help you understand which filing status is right for you as a couple. Start now! 

Married filing jointly vs. separately FAQs 

Choosing a filing status is one of the most important decisions for couples filing taxes for the first time together. We’ve answered a few common questions you may have when choosing a filing status. 

Can married couples file taxes separately? 

Yes, some couples may find filing separately works best for their circumstances. There are some downsides to filing separately, including a smaller standard deduction and restrictions on the types of credits and deductions you can claim. 

Is it better to file taxes jointly or separately as a married couple? 

The answer depends on your finances as a couple. The IRS prefers couples to file jointly, since filing together allows you to qualify for certain tax breaks and the largest standard deduction. 

When should married couples file separately? 

As mentioned, married couples may see a benefit in filing separately under specific circumstances based on things like income and eligibility for certain tax breaks. Read the section on when to consider filing separately as a married couple for more details. 

Do you get a bigger refund filing jointly or separately? 

Filing jointly doesn’t necessarily mean you will receive a larger refund, since your refund amount is determined by your tax rate and your withholding percentage. With that being said, filing jointly allows you to be eligible for additional credits and deductions listed in the section on the benefits of filing jointly.  

Disclaimer:
This article is intended to provide general information to the public and does not provide personalized tax, investment, legal, or business advice. You should seek the assistance of a professional for advice on taxes, investments, and any other financial, legal, or business matter pertinent to your individual situation.

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