The main distinction between “married filing jointly vs. separately” is that the former entails couples reporting their combined income and tax deductions on a single tax return. Meanwhile, couples filing taxes separately means they report their wages and pay taxes on their individual returns.

There are other key distinctions between the two types of filing status. For instance, the tax withholding with regards to married filing jointly vs. separately may be higher or lower depending on the couple’s tax bracket and qualifying deductions.

Keep reading if you need more guidance on how to decide between filing jointly or separately.

Key Takeaways

• The main difference between married filing jointly vs. separately is that the former combines the income and taxes of married spouses on a single tax return.
• Joint returns offer more tax deduction and refund opportunities for married taxpayers.
• Married filing separately is often preferred when one spouse has existing tax liabilities, miscellaneous itemized deductions, or high medical expenses that would otherwise not qualify for a tax deduction when reported on a joint return.

What is “Married Filing Jointly?” & How Does it Work?

Married filing jointly is a type of filing status for married taxpayers wherein the income, tax credits, and deductions of each spouse are combined and filed into a single tax return. The standard deduction for “married filing jointly” status for the 2024 tax year is $29,200.

Married couples may qualify to file taxes jointly if they meet any of the conditions:

• If a couple is legally married and living together before the last day of the tax year or on December 31, they are considered married for the entire year

• If both spouses agree to file their tax returns jointly

• If a couple is living together in a state that recognizes common-law marriage

• Couples who are not living together but are also not legally separated under a divorce decree

• Couples who have separated but whose decree of divorce has not yet been finalized

Between married filing jointly vs. separately, joint filing is the more logical choice for married couples because it yields lower tax ratesand higher tax refunds.

There are also other advantages to filing jointly as a married couple, such as:

• Eligibility for different types of tax credits, including Earned Income Tax Credit, Child Tax Credit, Lifetime Learning Credit, and Adoption Credit.

• Claiming deductible contributions on traditional IRA retirement plans.

• Disabled and elderly status deductions, particularly for student loan interests and other types of educational expenses.

• Evenly divided income for married couples living in community property states.

On the other hand, filing jointly for married couples may be disadvantageous if one spouse has existing and unsettled tax liabilities. Unless the spouse with no unpaid taxes qualifies for the

Innocent Spouse Relief, it wouldn’t be fair to have them carry the tax burden as well.

What is “Married Filing Separately?” & How Does it Work?

Married filing separately means that married couples or spouses file their taxable income, deductions, and credits on their individual tax returns. Married taxpayers filing separately are subject to a standard deduction of $14,600 for the 2024 tax year.

Couples typically choose to file separately because one or both of them have existing tax liabilities or unpaid balances that they owe to the IRS.

Other instances wherein married taxpayers prefer filing separately include:

• One of the spouses does not agree to have their taxes and income filed jointly with their partner due to suspicion of withholding tax information or possible tax evasion.

• If a couple earns the same monthly income, combining their taxable earnings could push them into a higher tax bracket, thereby making them liable for higher tax rates.

• The couple wants to maximize their itemized deductions. This is especially true if one of the spouses qualifies for more itemized deductions than the other.

Filing taxes separately is advantageous to couples who aim to reduce their tax liabilities while repaying their student loans and outstanding tax balances or settling incurred expensive medical bills.

On the other hand, filing separately limits the tax breaks, credits, and deductions that married taxpayers can claim.

Tax Credits and Deductions Affected by Filing Status

The tax credits and deductions affected by married filing jointly and married filing separately filing status include the Earned Income Tax Credit and the Child Tax Credit.

Let’s discuss how choosing whether married filing jointly vs. separately influences a couple’s eligibility for certain tax write-offs and breaks:

Earned Income Tax Credit (EITC)

The maximum EITC that a couple claims depends not only on whether they tick the married filing jointly or separately box on their Form W-4, but it will also be based on the number of children they have and their maximum income earned.

For instance, if a couple without kids has a maximum combined earned income of $25,511, they can claim up to $632 in earned income tax credit. Joint filing taxpayers need not have children to qualify for EITC.

In contrast, married couples filing separately must first meet specific conditions to claim the EITC, such as:

• Living apart from each other for at least six months within the year
• Having a written agreement of separation and living separately by the time the tax year is over

The couple must also have a qualifying child or children who have lived with one of the spouses for over six months or half of the year.

Child Tax Credit (CTC)

It is no secret that there are distinct advantages and conditions setting apart couples married filing jointly vs. separately when it comes to claiming the Child Tax Credit. Couples filing jointly can claim $2,000 per qualifying child.

They can also refund up to $1,700, thanks to the recently approved Child Tax Credit expansion.

It’s a bit more complicated for couples filing separately because the IRS does not allow both parents to claim the credit. The parents or couple must decide among themselves who should claim the Child Tax Credit.

If not, only the parent who lived with the child for the majority of the year or the spouse who claimed the child on their tax return can claim the CTC.

How to Decide if You Should File Taxes Jointly or Separately

To help you decide if you should file taxes jointly or separately, you must consider all the benefits and potential setbacks.

Let’s take a closer look at each of these deciding factors:

Married Filing Jointly vs. Separately: Benefits

The key to deciding between being married filing jointly vs. separately is to weigh the benefits offered by each filing status. Next, assess how the advantages offered by each affect your finances and long-term goals as a couple.

For instance, if you are newlyweds in the process of building a family together, then you will surely benefit from the tax deductions and credits granted to taxpayers filing jointly.

You can reduce the amount of taxes you pay and save more money to manage your short and long-term expenses.

Conversely, filing separately gives you protection from potential liabilities if your spouse has a history of evading their tax obligations or failing to report all of their income to the IRS.

Married Filing Jointly vs. Separately: Tax Brackets

When comparing the tax brackets of married couples filing jointly vs. separately, the biggest setback for joint filers is that they are subject to higher tax rates than the latter. Tax brackets provide taxpayers with a reference on the amount of taxes they owe based on their income and filing status.

The 2024 tax brackets for married filing jointly are as follows:

• 10% for income ranging from $0 to $23,200
• 12% for income ranging from $23,201 to $94,300
• 22% for income ranging from $94,301 to $201,050
• 24% for income ranging from $201,051 to $383,900
• 32% for income ranging from $383,901 to $487,450
• 35% for income ranging from $487,451 to $731,200
• 37% for income ranging from $731,201 or higher

Married couples filing separately should follow the tax brackets below:

• 10% for income ranging from $0 to $11,600
• 12% for income ranging from $11,601 to $47,150
• 22% for income ranging from $47,151 to $100,525
• 24% for income ranging from $100,526 to $191,950
• 32% for income ranging from $191,951 to $243,725
• 35% for income ranging from $243,726 to $365,600
• 37% for income ranging from $365,601 or higher

Knowing the different tax rates between married filing jointly vs. separately gives you a clearer and more accurate idea of the amount that you and your spouse will have to set aside to pay for your taxes.

If you are still unsure about which filing status best suits you and your spouse, you can check out the IRS Interactive Tax Assistant to help you and your spouse determine your filing status correctly.

Final Thoughts

When choosing between married filing jointly vs. separately, it is crucial to consider your individual finances and obligations first. If needed, use online tools to document and monitor your monthly income, voluntary deductions, and the average amount of taxes you pay per quarter.

Our paystub generator lets you track your earnings and taxes using ready-made templates that let you input all the essential information about your earnings. Our templates also come with built-in calculators that enable you to calculate your gross and net income and taxes more easily.

Lastly, take some time to learn and understand how each filing status works and compare how filing taxes separately or jointly will benefit or affect your circumstances as a married couple.

Married Filing Jointly vs. Separately FAQs

#1. Can I switch from filing jointly to separately and vice versa?

Yes, you can switch from filing jointly to separately and vice versa. There are no penalties when you change your filing status, as long as you and your partner continue to file your taxes on time and address any outstanding tax balances.

#2. Is married filing jointly the same as head of household?

No, married filing jointly is different from the head of household filing status in that the former applies to legally married couples, while the latter is more suitable for unmarried individuals with kids or dependents.

The head of household filing status also applies to taxpayers who pay more than half of the living or housing costs for qualifying individuals for a specific period.

#3. What is the penalty for filing single when you’re married?

The penalty for filing single when you’re married or using a tax filing status that you are not eligible to use includes a maximum fine of $250,000 and imprisonment of up to three years.

#4. When married and filing jointly, who is the primary taxpayer?

The primary taxpayer, when married and filing jointly, is the person who is listed first on your tax return. It is important to discuss this with your partner and agree on who should be the primary taxpayer between the two of you.

It is also important to note that being the primary taxpayer does not reduce or change your existing tax liabilities.