Once you get married, you have two options for filing your taxes: filing jointly or filling separately. While the IRS does offer several tax breaks to those who file jointly, married couples still have the option to file their taxes separately.
Married Filing Jointly
Filing your taxes jointly comes with a lot of benefits. The IRS gives couples who file jointly some of the largest standard deductions out there, which means that they can deduct a large portion of their income right away. In addition to this, married taxpayers who file jointly can often benefit from a number of tax credits, including:
- Earned Income Tax Credit
- American Opportunity and Lifetime Learning Tax Credits
- Child and Dependent Care Tax Credit
If you’re married and looking to save on your taxes, then filing jointly may offer you the most opportunity for savings.
Married Filing Separately
When you choose to file separately, you won’t get as many tax credits as you would if you were filing jointly. In fact, couples who file returns separately often face higher tax rates and are given a much lower standard deduction. While there may be some factors that would encourage separate filing, such as high out-of-pocket medical costs, most married taxpayers opt to file jointly.
Have any questions about the best move for you and your spouse? Call Taxation Solutions, Inc. today to learn more about tax options for married couples!