Why is filing married separately better

Changing your status is simple. If you'd like to make changes to the amount of tax you're withholding per paycheck, you can submit a new W-4 to your employer. Before making the change, you must first determine your eligibility for the various filing statuses. For married persons with a living spouse, there are two ways to file:. Here's what experts have to say about filing jointly versus separately, plus advice on how to decide what's right for you.

After that, the rates continue to increase on a marginal basis. Additionally, the IRS offers spouses who file jointly one of the biggest standard deductions each year, according to TurboTax. Another reason to consider filing together is that joint filers are often eligible to receive meaningful savings in the form of tax credits, such as:.

As long as you were married by Dec. While "it's almost always better to file jointly because of a lower tax responsibility overall," there are "very specific situations" when it pays to submit separate returns, Guglielmetti says. You or your spouse have high or unpaid student loan debt: If one of you has defaulted on your student loans, meaning you haven't paid on them in days or more, you should consider filing separately, explains Malik S.

Lee, an Atlanta-based certified financial planner at Felton and Peel. That's because, in this case, your joint tax refund could end up being rerouted through the Treasury Offset Program and put toward the unpaid debt, meaning neither of you would get a refund.

However, if you had filed separately, at least one of you would have a refund. That way, their income is not considered in the repayment calculation," says Guglielmetti. Include a cover letter with your tax return and explain why the SSN, date of birth for the spouse are missing.

Here are the mailing addresses for IRS returns. It is easy to file as Married Filing Separately on eFile. Choosing your filing status is one of the first things you do when you start preparing your tax return online. Once you select your filing status eFile. After the IRS accepts your Married Filing Separately tax return, if you need, you still can amend your return to a Married Filing Joint filing status return for up to 3 years after the original tax deadline this does not include extensions.

Find out how to file an amended tax return. Get Your Tax Refund Date. What is DocuClix? Security About eFile. Where Is My Refund? How to Check Refund Status efile. Mailing Addresses Contact eFile. Sign In Start Now.

Filing Status. Join Taxesfaction! More eFiler Reviews. Why Choose eFile. TaxTalk With Tess. Married filing jointly offers the most tax savings, especially when spouses have different income levels. If you use the married filing separately status, then you are unable to take advantage of a number of potentially valuable tax breaks.

Some important breaks include:. As a couple who files joint tax returns, you can also take deductions for your contributions to a traditional individual retirement account IRA and any expenses related to the adoption of a qualifying child. Tax bills aside, there is one scenario in which married filing separately may be especially wise.

Signing a joint return means that both spouses are responsible for the accuracy of the return and for any tax liabilities or penalties that may apply. By signing your own return and not a joint one, you are only responsible for the accuracy of your own information and for any tax liability and penalties that may ensue.

If you live in community property states—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin—then you may need to see a tax professional, because the rules about separate incomes can be tricky.

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