There are many advantages to filing a joint tax return with your spouse. The IRS gives joint filers one of the largest standard deductions each year, allowing them to deduct a significant amount of their income immediately. Couples who file together can usually qualify for multiple tax credits such as the: Earned Income Tax Credit American Opportunity and Lifetime Learning Education Tax Credits Exclusion or credit for adoption expenses Child and Dependent Care Tax CreditJoint filers mostly receive higher income thresholds for certain taxes and deductions—this means they can earn a larger amount of income and potentially qualify for certain tax breaks. Consequences of filing your tax returns separately On the other hand, couples who file separately receive few tax considerations. Separate tax returns may give you a higher tax with a higher tax rate. The standard deduction for separate filers is far lower than that offered to joint filers. In 2019, married filing separately taxpayers only receive a standard deduction of $12,200 compared to the $24,400 offered to those who filed jointly. If you file a separate return from your spouse, you are automatically disqualified from several of the tax deductions and credits mentioned earlier. In addition, separate filers are usually limited to a smaller IRA contribution deduction. They also cannot take the deduction for student loan interest. The capital loss deduction limit is $1,500 each when filing separately, instead of $3,000 on a joint return.When you might file separately In rare situations, filing separately may help you save on your tax return. For example, if you or your spouse has a large amount of out-of-pocket medical expenses to claim and since the IRS only allows you to deduct the amount of these costs that exceeds 7.5% of your adjusted gross income (AGI) in 2019 (10% of AGI beginning in 2020), it can be difficult to claim most of your expenses if you and your spouse have a high AGI. For example, if you have $10,000 in medical expenses and made $50,000. That would meet the 7.5% threshold ($10,000 ÷ $50,000 = 20% of your income). Whereas, if together you make $135,000, this would disqualify you from claiming these medical expenses ($10,000 ÷ $135,000 = 7.4% of your income). Filing separate returns in such a situation may be beneficial if it allows you to claim more of your available medical deductions by applying the threshold to only one of your incomes.For more tips on when you might want to file separately, be sure to check out our article When Married Filing Separately Will Save You Taxes. Deciding which status to use The best way to find out if you should file jointly or separately with your spouse is to prepare the tax return both ways. Double check your calculations and then look at the net refund or balance due from each method. If you use TurboTax to prepare your return, we’ll do the calculation for you, and recommend the filing status that gives you the biggest tax savings.

Question

I worked in Texas and collected Social Security with my total income over $26,600.00. My wife worked and earned $80,000. Would it benefit us to file as married jointly?

Forum|Forum|6 years ago
April 23, 2020
2 replies
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GiseleD

There are many advantages to filing a joint tax return with your spouse. The IRS gives joint filers one of the largest standard deductions each year, allowing them to deduct a significant amount of their income immediately.

Couples who file together can usually qualify for multiple tax credits such as the:

Earned Income Tax Credit
American Opportunity and Lifetime Learning Education Tax Credits

Exclusion or credit for adoption expenses

Child and Dependent Care Tax Credit

Joint filers mostly receive higher income thresholds for certain taxes and deductions—this means they can earn a larger amount of income and potentially qualify for certain tax breaks.

Consequences of filing your tax returns separately

On the other hand, couples who file separately receive few tax considerations. Separate tax returns may give you a higher tax with a higher tax rate. The standard deduction for separate filers is far lower than that offered to joint filers.

In 2019, married filing separately taxpayers only receive a standard deduction of $12,200 compared to the $24,400 offered to those who filed jointly.
If you file a separate return from your spouse, you are automatically disqualified from several of the tax deductions and credits mentioned earlier.
In addition, separate filers are usually limited to a smaller IRA contribution deduction.
They also cannot take the deduction for student loan interest.
The capital loss deduction limit is $1,500 each when filing separately, instead of $3,000 on a joint return.

When you might file separately

In rare situations, filing separately may help you save on your tax return.

For example, if you or your spouse has a large amount of out-of-pocket medical expenses to claim and since the IRS only allows you to deduct the amount of these costs that exceeds 7.5% of your adjusted gross income (AGI) in 2019 (10% of AGI beginning in 2020), it can be difficult to claim most of your expenses if you and your spouse have a high AGI.
- For example, if you have $10,000 in medical expenses and made $50,000. That would meet the 7.5% threshold ($10,000 ÷ $50,000 = 20% of your income).
- Whereas, if together you make $135,000, this would disqualify you from claiming these medical expenses ($10,000 ÷ $135,000 = 7.4% of your income).
Filing separate returns in such a situation may be beneficial if it allows you to claim more of your available medical deductions by applying the threshold to only one of your incomes.

For more tips on when you might want to file separately, be sure to check out our article When Married Filing Separately Will Save You Taxes.

Deciding which status to use

The best way to find out if you should file jointly or separately with your spouse is to prepare the tax return both ways. Double check your calculations and then look at the net refund or balance due from each method. If you use TurboTax to prepare your return, we’ll do the calculation for you, and recommend the filing status that gives you the biggest tax savings.

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VolvoGirl

Employee

Do you only have Social Security income? If you file separately then you have to file your own return.

Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong. If one person itemizes deductions then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!

And there are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

And contributions to IRA and ROTH IRA are limited when you file MFS.

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

See …….

https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-separately/00/25590