When filing taxes for a married couple, which is advantageous, filing separately or jointly? why? pls explain?

Question

we have one child too. advantageous in terms of bigger tax refunds. thanks

Answer 1

It is rare that Married Filing Separately (MFS) is advantageous to the taxpayer. Several credits and options are eliminated with MFS over Married Filing Jointly (MFJ). The most common reason people use MFS is to avoid a debt of their spouse taking any refund. Once in awhile, people with greatly different levels of income and some specific circumstances that effect their deductions, will find that MFS is better.
In my office I personally approve any return in which the client wishes to file MFS and most choose not to do so when they see the difference. However some do it out of spite for the other person because generally it will have a greater negative effect on one spouse over the other.

Answer 2

It's almost always best financially to file a joint return. Sometimes it doesn't make much difference, but sometimes it makes a lot. If you figure your taxes both ways, the tables will usually give you a lower total tax, sometimes just a few dollars, sometimes quite a bit, if you file jointly. By filing joint and combining the two incomes, you essentially get to average them as if half was from each person when calculating your tax.

There are a number of credits that aren't available to people filing as married filing separately. If you're eligible for one or more of these, you'd lose out filing separately.

The exception is if one spouse has some deductible expenses that are limited by AGI - then it's possible that filing separately will give a lower tax. The most common examples here would be one spouse with very high medical expenses or very high unreimbursed employee business expenses, where a percentage of AGI is subtracted before any of the expenses can be deducted. Note though that if one spouse itemizes deductions, the other must also, or take zero as their standard deduction.

Most credits that are limited based on AGI are not available to married people filing separately.

You can always figure your taxes both ways, to see which will give you the least total taxes. It's almost always joint, though, except in the few cases mentioned above.

Answer 3

You can figure it both ways and see which is best but unless there is something out there that takes one partners refund for something I feel the MFJ return is best. Married, Filing Seperated you forfeit your EIC right off the bat, you forfeit student loan interest deduction, cannot take education credits; the list goes on. If one spouse faces having their refund taken the other spouse simply includes a form 8379; which is Injured Spouse Allocation; and their portion of the refund cannot be touched for something owed by the other.

Answer 4

there are particular credit and deductions you're no longer allowed while you're married submitting one after the different. a variety of are preparation credit or deduction. this would make submitting mutually extra advantageous on your case. additionally based which state you reside in one way or the different would desire to be extra perfect. a stable tax consultant would desire to calculate it the two approaches and provide help to appreciate that's ultimate. Laura H – H&R Block – Senior Tax consultant 5 **this suggestion become arranged in keeping with our information of the tax regulation in consequence on the time it become written because it applies to the data which you presented.

Answer 5

jointly usually give you the best refund or lowest amount of taxes paid