How to Choose Your Tax Filing Status if You’re Married

If you’re married then you’ve probably just always filed a joint return with your spouse. In fact, chances are you’ve never even considered filing any other way. However, for some people, married filing jointly is not the best option. Depending on your situation, it could be more advantageous to file separately. Here are some things to consider when choosing what filing status to use if you are married.

While in many cases, filing together could help lessen the tax hit on you and your spouse it doesn’t always work that way. Sometimes, the only advantage of filing jointly is that you only have to worry about one return. If you and your spouse both work and one of you earns a lot more than the other, then it will typically be better to file jointly, as it will usually help reduce your combined tax bill.

On the other hand, there are other circumstances wherein it that might better to file separately. For example, if you both have taxable income and one of you has a lot of itemized deductions limited by adjusted gross income (AGI), then it might make sense to file separately. That’s because by filing separately, you can also separate both of your AGI’s. If your AGIs are lower on your separate returns, you can save on your tax bill.

This is just one example of where filing separately from your spouse could be helpful. However, it’s best to weigh all your options before making that choice. If you’re not sure what status to choose, you can contact us at GROCO for help. We’ll look at all the numbers and all the possible scenarios and choose the best path for you. Call us at 1-877-CPA-2006, or click here.

Posted in
Nzinga Blake

Social Entrepreneurship & Why It Matters | Nzinga Blake

Interview Transcript of: Social Entrepreneurship & Why It Matters | Nzinga Blake Alan Olsen: Can you share a little about your background?   Nzinga Blake: I was born in Maryland, my family is from West Africa from Sierra Leone and my mom has some roots as well in Nigeria and so I was born here in…

Mark Eaton

Mark Eaton: The Four Commitments of a Winning Team

Episode Transcript of: Mark Eaton: The Four Commitments of a Winning Team Mark Eaton: I had an opportunity to play team at the highest level in the NBA and I’ve looked at what I learned on the basketball court and figured out a way to transpose that and transfer it to the business realm and…

Rikin Gandhi

Digital Green: Transforming Ag Extensions in India | Rikin Ghandi

Interview Transcript of: Digital Green: Transforming Ag Extensions in India | Rikin Ghandi Rikin Ghandi: Growing up I was inspired by astronauts and I wanted to put together my own astronaut playbook by studying computer science, aerospace engineering, getting a pilot license and was about to enlist in the US Air Force when I said college…

Kris Nielson

The Company That Let’s You Take Back Control of Your Garage | Kris Nielson

Interview Transcript of: The Company That Let’s You Take Back Control of Your Garage | Kris Nielson Kris Nielson: I came to school at BYU-Idaho up in Rexburg Idaho. I set out to go into law but decided to change course when I took some business classes and loved organizational strategy. During college I began…