We just got married, no mortgage and no kids, we both make about 32k per year. Should we file jointly or seperately and should we opt for 1 or 2 allowances?

Generally, filing jointly will give you a bigger refund or less taxes due. When you file separately, your tax rate is higher and you won't be able to claim:

• Education benefits
• Earned Income Credit (EIC)
• Child and Dependent Care Credit (usually)
• Adoption Credit (usually)
• The same benefit married filing jointly couples get for personal exemptions, itemized deductions, the Child Tax Credit, and capital losses (all of these deductions are reduced by half)
• The standard deduction if your spouse is claiming itemized deductions

On top of that, if you live in the community property states of Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you have to deal with community property allocations and adjustments, which adds extra work and complexity to your tax preparation chores.

You can compare filing jointly vs. separately with TurboTax's free calculator TaxCaster. It will give you the estimated tax differences when filing either way. It’s up-to-date with the latest tax laws and can estimate your 2020 taxes as well.

If you decide to file separately, we suggest you use TurboTax CD/Download for Windows or Mac, as you can file up to 5 returns within the program. If you use TurboTax Online, you'll have a separate fee for each return.

As far as the W4 withholding is concerned, use the IRS withholding calculator to see what will work best for you: https://apps.irs.gov/app/tax-withholding-estimator