Separately vs. Jointly

Sandman__Slim

Hello,

I am wondering if it makes more sense to file separately vs jointly between my wife and I? I've reviewed the tax brackets but we're having trouble deciding. Here's our situation:

• We're both in our mid-30's, and married the entire year
• My wife makes $35k/year, while I make $85k/year
• We own a home together
• We have no children
• I paid about $3k in medical debt, and $1.5k in student loan interest
• No legal issues or owe back taxes
• We receive no other income

Thanks for helping us make sense of this!

rachels

Hi sandman_slim,

Most taxpayers end up with a better result if they file Married Filing Jointly, though there are some situations where Married Filing Separately will be better.

Without looking at returns comparing your specific situation with the different filing statuses, it is difficult to tell for sure which option would be better for you.

The Student Loan Interest Deduction is not available for taxpayers filing as Married Filing Separately, so you would not get that deduction if you choose to file separately.

If you wish to compare a joint return with a separate return in our software, you will need to use two accounts. In the first account, enter just your information on a married filing separately tax return. Create a second account to enter your spouse's information on a married filing separately return. Make note of the refund/tax owed for each. Then you would change one of the accounts to show the information for a married filing jointly return. Enter all information for both you and your spouse on this, then compare the results to the married filing separately results. This is a good option if you wish to make sure you're using the best filing status for your situation.