Basically, when it comes to filing your personal tax return, there are five filing statuses…
If you’re married, you have the option to file one or two tax returns every year. While most people file together on one return due to the increased standard deduction, in some situations, it makes more sense to file two separate returns.
There are several situations where married filing separate can benefit you. For example, sometimes filing jointly pushes you into the next tax bracket. If you file separately, you will most likely fall into a lower tax bracket, which means your income will be taxed at a lower rate.
Some other reasons to file separately include:
Filing separately can help with particular circumstances, but it can limit other tax breaks you might be eligible to take. Some of the credits and deductions you might lose include:
If you count on any of these credits or deductions, then it might not be worth it to file separately.
In short, if one spouse itemizes, the other should as well. This is especially important because the new tax code has nearly doubled the standard deduction for all filing statuses. It could be more beneficial than ever to file jointly.
The steps to file separately are straightforward:
The steps to file jointly are very similar to filing separately.
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