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It is always allowed for married couples to file jointly, as long as they agree, even if one spouse does not work or their incomes are very different. Some tax benefits and credits are disallowed or reduced if both spouses file as married filing separately. You file one return that lists all your combined income, deductions, dependents and credits.
It is possible, although very unusual, that you would owe less tax by each filing separately. The only way to know for sure is to prepare test returns both ways.
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