A commonly asked question by married taxpayers is whether they should file a joint tax return or do it separately, as the law does not require the former. It will depend on the preference of the couple, as both alternatives present distinct advantages.
Advantages of a joint tax return
According to the IRS, 95 percent of married taxpayers file jointly because the total amount of taxes needed to be filed is more likely to be lower when combined, as compared to other filing statuses. There are also other tax benefits, deductions, and credits that joint tax returns may be qualified for, which are not applicable for other filing statuses.
Advantages of a joint tax return
According to the IRS, 95 percent of married taxpayers file jointly because the total amount of taxes needed to be filed is more likely to be lower when combined, as compared to other filing statuses. There are also other tax benefits, deductions, and credits that joint tax returns may be qualified for, which are not applicable for other filing statuses.
Business magazine Forbes studied two different cases of couples and how much savings they would be able to get should they decide to file jointly. One of the married couples was newlyweds with starter salaries, and the other was a high-earning pair but paying costly medical bills. In both cases, more savings were incurred by filing jointly.
Advantages of separate tax returns
The filing of separate returns provides either of the spouses from joint tax liabilities, meaning they are independently responsible for the accuracy of their respective payment. This also serves as protection for one of the spouses if he or she believes that his or her partner is omitting income or overstating deductions.
Advantages of separate tax returns
The filing of separate returns provides either of the spouses from joint tax liabilities, meaning they are independently responsible for the accuracy of their respective payment. This also serves as protection for one of the spouses if he or she believes that his or her partner is omitting income or overstating deductions.