Introduction
When Mark and Lisa got married last year, they assumed filing their taxes together was the obvious choice. But as they sat down to do their tax return using TurboTax, they realized they weren’t sure if filing jointly was actually the best option. Would they save more money together, or should they consider filing separately? With tax season approaching, they needed to understand how their filing status affected their tax brackets 2024, deductions, and potential benefits like the child tax credit.
If you’re in a similar situation, deciding whether to file taxes jointly or individually can have a significant impact on your financial outcome. This guide will help you weigh the pros and cons of each option so you can make an informed decision before the tax deadline 2025.
Understanding Filing Status Options
The IRS offers different tax filing statuses, but for married couples, the primary choices are:
- Married Filing Jointly (MFJ)
- Married Filing Separately (MFS)
Each comes with distinct advantages and potential drawbacks depending on your financial situation.
Pros and Cons of Filing Jointly
Pros:
- Lower Tax Rates: Couples who file jointly often fall into lower tax brackets 2024, which can reduce their overall tax burden.
- Larger Standard Deduction: For 2024, the standard deduction for married couples filing jointly is $29,200, compared to just $14,600 if filing separately (source).
- Eligibility for Tax Credits: Joint filers are eligible for key tax credits such as the child tax credit, Earned Income Tax Credit (EITC), and education-related credits.
- Easier Process: Filing jointly simplifies the process and often leads to lower tax preparation fees.
Cons:
- Shared Liability: Both spouses are responsible for any tax debt or errors on the return.
- Potential Loss of Deductions: If one spouse has high medical expenses or itemized deductions, filing jointly may reduce potential savings.
When to Consider Filing Separately
While filing jointly is typically beneficial, there are cases where Married Filing Separately (MFS) makes sense:
- One Spouse Has High Medical Expenses: The IRS allows deductions for medical expenses exceeding 7.5% of adjusted gross income (AGI). If one spouse has significant medical bills, filing separately may allow them to meet the deduction threshold more easily.
- Student Loan Repayment Plans: If one spouse is on an income-driven repayment plan, filing separately can reduce their monthly loan payments by lowering their reported income.
- Legal or Financial Protection: If one spouse has concerns about the other’s tax history, filing separately avoids shared liability for potential IRS issues.
How to Decide: Use a Tax Calculator
If you’re unsure which option saves you the most money, using a tax calculator can help. Online tools, such as the TurboTax calculator, allow you to estimate your tax liability under both filing statuses (source).
Key Deadlines for Filing Taxes in 2025
- When are taxes due 2025? The IRS tax filing deadline is April 15, 2025.
- If you need an extension, you must file for it by the deadline, but any owed taxes must still be paid on time to avoid penalties.
Conclusion
Deciding whether to file taxes jointly or individually depends on your unique financial situation. In most cases, filing jointly leads to greater tax savings, but there are scenarios where filing separately makes sense. Use resources like TurboTax and the IRS tax calculator to compare your options before the tax deadline 2025.
For a few more tips regarding taxes, check this out: The Day the IRS Took My Money—Twice.
Do you typically file jointly or separately? Share your experience in the comments below!
