Tax Brackets Single vs Married

If you’re a married person, you can make a difference in your taxes depending on how you file your taxes. You have options to file your taxes jointly with your spouse or separately. There are advantages of filing jointly and separately:

Filing Jointly

IRS enables married couples to file their taxes jointly and they can generally qualify for some good tax credits like:

  • Child and Dependent Care Tax Credit
  • American Opportunity and Lifetime Learning Education Tax Credits
  • Adoption expenses credits
  • Earned Income Tax Credit

Joint filing generally brings higher income thresholds for some taxes and deductions. It is mostly the best for couples who file jointly but in some cases, there might be better advantages of filing separately. IRS strongly suggests couples file their taxes jointly.

Filling Separately

Couples who prefer filing separately generally want to make a bigger tax return of their medical expenses.

If you and your spouse live apart, it’s always best filing separately. In such situations qualifying for head of household maybe even better than filing separately

The Community Property States have special rules for income taxes. Each spouse mostly reports half of their total income along with the half of the deductions on every tax return.

Idaho, Nevada, Texas, Arizona, New Mexico, California, Wisconsin, Louisiana, and Washington are the designated community states of U.S

Consider that, your spouse has large out-of-pocket medical expenses and you are allowed to deduct the cost that exceeds 10% of your income.

It’s so difficult to claim most of your expenses if one of the married couples have a high AGI ( adjusted gross income )

Which One is Better, and When?

You need to make the calculations very carefully. You simply calculate your expenses for possible tax amount and compare with each other. It’s always better consulting an expert on this subject.

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