Question

Married filing joint

Forum|Forum|6 years ago
February 17, 2020
1 reply
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Wife and I usually file married joint.

This year wifey became independent contractor and with expenses was in the red.

We have a kid and a house.

Would it be beneficial for us to file separately?

Thinking single lower income for her would reduce her student loan payment, but we may miss out on some credits for married.

Cheers.

TurboTax Home & Biz Windows

B

bwergeles

If you are married and have a child (or children), it is usually better to file "married filing jointly." This is because some tax credits and deductions are not available when you file "married filing separately." Two credits that are not available when you file as "married filing separate" are the Earned Income Tax Credit and the Child and Dependent Care Credit. Depending on your tax situation, there may be additional tax credits or deductions available to you, like the deduction for student loan interest.

If you normally itemize your deductions, keep in mind that when you file "married filing separate" both spouses must either itemize their deductions or claim the standard deduction.

However, some married couples may find a benefit to filing as married filing separate. For example if you are attempting to reduce a loan payment or show a lower income for some other reason, filing separate may be a better alternative.

Since TurboTax does not charge a fee until you actually file your return, it may be beneficial to prepare your return as married filing joint and then create another account and prepare your return as married filing separate. Comparing the results will help you determine which filing status is best for your situation.

Please see this TurboTax article for more information.