Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation for individuals and small businesses. Her work has appeared in Business Insider and The New York Times. Janet has been nominated a.
Janet Berry-Johnson, CPA Taxes ExpertJanet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation for individuals and small businesses. Her work has appeared in Business Insider and The New York Times. Janet has been nominated a.
Written By Janet Berry-Johnson, CPA Taxes ExpertJanet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation for individuals and small businesses. Her work has appeared in Business Insider and The New York Times. Janet has been nominated a.
Janet Berry-Johnson, CPA Taxes ExpertJanet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation for individuals and small businesses. Her work has appeared in Business Insider and The New York Times. Janet has been nominated a.
Taxes Expert Deborah Kearns Mortgages ExpertWith two decades of experience as a respected journalist and communications leader in the mortgage field, Deborah Kearns is passionate about helping consumers make smart homeownership and personal finance decisions. Her work has appeared in The New Y.
Deborah Kearns Mortgages ExpertWith two decades of experience as a respected journalist and communications leader in the mortgage field, Deborah Kearns is passionate about helping consumers make smart homeownership and personal finance decisions. Her work has appeared in The New Y.
Deborah Kearns Mortgages ExpertWith two decades of experience as a respected journalist and communications leader in the mortgage field, Deborah Kearns is passionate about helping consumers make smart homeownership and personal finance decisions. Her work has appeared in The New Y.
Deborah Kearns Mortgages ExpertWith two decades of experience as a respected journalist and communications leader in the mortgage field, Deborah Kearns is passionate about helping consumers make smart homeownership and personal finance decisions. Her work has appeared in The New Y.
Updated: Jul 5, 2023, 8:25am
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When deciding how to file your federal income tax return as a married couple, you have two filing status options: married filing jointly or married filing separately. Each choice has advantages and drawbacks, so it’s important to understand the differences before making your final decision.
“Married filing jointly” is a way for married couples to file their taxes together. Both spouses are responsible for any tax liability or penalties incurred, and the couple receive one combined tax refund. Filing jointly is the simpler way for a couple to file taxes, because only one return is involved.
All legally married couples can use married filing jointly status, even if one spouse has no taxable income or deductions.
Your eligibility to file jointly is based on your marital status on the last day of the tax year. For example, if you marry on December 31, 2023, you and your spouse may file a joint tax return for the 2023 tax year. Likewise, if your divorce becomes final on December 31, you’re considered unmarried for the entire year.
You may also file a joint tax return if your spouse died during the tax year and you haven’t remarried, or if you live apart but are not legally separated.
Additionally, the IRS allows married filing jointly status for couples who live together in a so-called common-law marriage, provided it began in a state that recognizes those arrangements. Those states are Alabama, Colorado, Iowa, Kansas, Montana, Oklahoma, Pennsylvania, Rhode Island, South Carolina and Texas, as well as Washington, D.C.
Filing taxes together as a married couple isn’t the optimal filing status in every situation. If one spouse has a significantly higher taxable income or more medical expenses or other deductions than the other, they might owe less tax overall if they choose to file separately.
When married couples file taxes separately, each spouse is responsible for their own tax debt and any penalties incurred. Each also receives their own tax refund. Filing separately is more complicated than filing jointly, because two returns are required.
Filing separately also may result in paying more taxes, because married couples who file individual tax returns cannot claim certain tax breaks that are available to those who file jointly, including:
In addition, if you and your spouse file separate returns and one of you itemizes deductions, the other spouse cannot claim the standard deduction. Both must itemize, even if it results in higher tax liabilities.
Couples who live in one of the “community property states”—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin—have an additional complication to think about when considering whether to file taxes separately.
In those states, income and deductions are generally split 50-50 between two spouses unless they’ve lived apart all year. So, each spouse must report their own, individual income plus half of all “community” income: the other spouse’s income plus any payments generated by the couple’s assets.
Married couples who choose to file their taxes separately must be legally married. This filing status is not available to unmarried couples.
If you’re legally separated from your spouse, under a “separate maintenance” decree, the IRS considers you unmarried, and you can choose either the single or head of household filing status, not married filing separately.
One major consideration when deciding between joint and separate filings is whether both spouses will be held responsible for any mistakes or unpaid taxes on a joint return.
When married couples file jointly, both are responsible for any tax liability or penalties incurred. This is called joint and several liability.
But with married filing separately status, each spouse is responsible only for their own reported income and debts. So if you’re worried about your spouse filing their taxes accurately, separate filing ensures you’re not on the hook for potential tax evasion or penalties.
Another instance where married filing separately might be a good idea is if one spouse owes significant amounts of money to the federal government. If you file jointly and your spouse owes back taxes or child support or has defaulted on federal student loans, the Treasury Offset Program can claim your joint refund to cover those debts.
Joint filers can avoid being held liable for their spouse’s taxes.
If you file jointly with your spouse and the IRS later audits your return and assesses additional taxes, penalties and interest, you can avoid your spouse’s income tax liabilities if you qualify for what’s called innocent spouse relief.
You may qualify for innocent spouse relief if you:
You apply for innocent spouse relief using Form 8857 as soon as you become aware of the tax situation. The IRS will review your application and decide whether you’re eligible.
While innocent spouse relief is an option for escaping penalties when you file jointly with your spouse, it’s easier to file taxes separately from the start.
While filing separately is an option for couples, filing jointly typically results in a lower overall income tax bill and may make it easier to prepare your taxes. However, filing separately can benefit couples if one spouse has outstanding debt or tax issues.
It’s essential to carefully weigh the pros and cons of filing jointly versus separately and consult with a tax professional if necessary. Today’s best tax software typically will allow you to compare married filing separately versus jointly to determine which filing status results in less tax due—or a larger tax refund—based on your unique financial situation.
