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.
Two Approaches to Dealing With Stock Market Volatility
Two Approaches to Dealing With Stock Market Volatility The stock market and uncertainty go hand in hand. If the market was always stable and easy to predict, there wouldn’t be any risk at all and everyone would be rich. The market is always fluctuating, but some times are much more volatile than others. For example, this…
What Core Beliefs Do Great Bosses Share?
What Core Beliefs Do Great Bosses Share? What makes a great boss, great? For starters, great bosses earn their employees trust. People want to follow great bosses because they believe in what they are doing. Great bosses also believe in those they lead. They help their people accomplish more and achieve greater successes. But what…
Is Paying Off Your Mortgage Still a Good Idea?
Is Paying Off Your Mortgage Still a Good Idea? For decades, the most common and well-accepted belief is that paying down your mortgage is a good idea. After all, the quicker you pay it off, the less money you throw away in interest payments. So it stands to reason that getting it paid off faster…
Don’t Get Bit By Hidden Taxes in Retirement
Don’t Get Bit By Hidden Taxes in Retirement Just about everyone hates taxes. They’re complicated and they often seem too high for moat taxpayers. Keeping track of the constantly changing laws and regulations can be unbearable for many, as well. So what about when you retire? Things will get a lot easier when you quit…