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What is the difference between Married Filing Jointly and Married Filing Separately? |
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Married taxpayers have the option of selecting between two filing status -- Married Filing Joint or Married Filing Separate. The statutes provide both taxpayers with various tax benefits, such as a tax liability being lower, depending on which way you file. With joint returns, both spouses can take advantage of using one another's losses or expenses; in addition, certain tax credits and benefits may only be available when both spouses file separate returns. With separate returns, taxpayers can split their income and expenses respectively between each other, which may allow them to stay in a lower tax bracket (as opposed to a joint return where incomes are combined and placed in one tax bracket). It is best to calculate a tax return with both scenarios to see which one is more advantageous. |
