As most of you know, the marital status of a taxpayer is an important thing that could change the filing way of a taxpayer.
Martial Status Qualification of the IRS
Having a marriage certificate doesn’t mean that you are a married person in the eyes of the IRS. If you got married on December 31 of the last tax year or sometime earlier, you can file your tax together with your spouse.
Getting married one day after that time, January 1 of the new year means that you were single last year and you must file your taxes separately.
2020 Tax Brackets for the Married
The IRS uses a progressive tax system meaning that the more income you get, the more it is taxed. Let’s take this on our tax bracket table for the married individuals and try to understand the system with the help of an example:
|Tax Rate||Taxable Income ( filing jointly )||Taxable Income ( filing separately )|
|10%||$1 – $19,750||$1 – $9,875|
|12%||$19,750 – $80.250||$9,876 – $40,125|
|22%||$80,251 – $171,050||$40,126 – $85,525|
|24%||$171,051 – $326,600||$85,526 – $163,300|
|32%||$326,601 – $414,700||$163,301 – $207,350|
|35%||$414,701 – $622,050||$207,351 – $311,025|
|37%||more than $622,050||more than $311,025|
Married Filing Jointly Advantages
The IRS strongly recommends couples to file their taxables jointly. We also suggest the same thing and here are the reasons why:
Better Standart Deduction: If you file separately, $12,000 is the standard deduction amount you get. When you file jointly this amount rises to $24,000. You have a high possibility of lowering your income with this option.
Better and More Credits: Tax credits are given by the IRS to the taxpayers. Married couples are more likely to have tax credits than single taxpayers. Married filing jointly may qualify some the following tax credits:
- Adoption Credit
- American Opportunity Credit
- Child and Dependent Care Tax Credit
- Lifetime Opportunity Credit for Higher Education Expenses
- Earned Income Tax Credit
- Credit for the Elderly and Disabled
Time-Saving: You only have to present one tax return form and don’t need to do a lot of paperwork if you file jointly.