Tax preparers often choose to file their clients married filing jointly with the IRS for a bigger benefit, but separately may be better.
Most married couples choose to file their taxes jointly, but under certain circumstances filing separate may be a better idea.
Most who choose to file separately while married do so for legal or strategic reasons, according to Marca.
This year the thing to take into consideration is how to get the most for your money with stimulus checks and the child tax credit.
Why some married couples file jointly with the IRS
You may also be entitled to more credits or tax deductions.
There are some you can only claim if you’re married like student loan interest deduction.
If married you can make contributions to a Roth IRA at a higher rate because your AGI is higher with combined incomes.
Why some married couples file separately with the IRS
If spouses earn the same amount of high income, it may be better to file separately.
This results in you paying less in taxes.
Another situation where it may be beneficial is if one spouse has a lower income and high medical bills.
To claim medical bills you must use an itemized deduction and reach 7.5% of your AGI.
That’s easier to do with a lower income.
Finally, it may be best to file separate if you do not want to be held liable for your spouse’s tax obligations.
By filing separately you can protect yourself from mistakes or bad judgement from your spouse.
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