Married Filing Jointly v/s Married Filing Separately; If you are a married individual and wants to file your tax returns in the United States, the option to file one or two tax returns is available each year. Due to the increased standard deduction, most of the married couples prefer to file their taxes jointly. But there are certain special cases where it is more beneficial for the married individuals to file their returns separately to the Internal Revenue Service. Read the complete post to know should a married couple file jointly or separately. You can also book an appointment with Black Ink to get the best tax preparation service for married couples in USA.
When Should Married Couples File Separately?
There are specific situations where married filing separate can get better benefits as compare to joint filing of returns. One of the examples is seen when filing jointly pushes taxpayers into the next tax bracket. In such a case, it is most likely that filing separately will let married couples to get into a lower tax bracket. It means that if they file their taxes separately, their income will be taxed at a lower tax rate. Other reasons for married filing separately include:
- If one spouse does not want to be liable for the taxes of other person.
- If one spouse has a considerable medical expense.
- If one spouse is either incapable or reluctant to consent for filing a joint tax return as married.
- If one spouse qualifies as the head of the family/household.
- If one spouse has a significant itemized deduction.
- If both spouses are separated but not divorced yet and they prefer to carry their finances separately.
If any of the above condition is the case, then it is preferable for married couples to file their returns separately in United States. IRS has also provided tax inflation adjustments for 2020. You can go through the post to know the latest tax rate and income bracket changes for married couples filing jointly and separately.
Credits & Deductions When Married Filing Separately:
If you are wondering that do I lose anything when I choose to file separately but married, then the answer is YES. There is a list of credits or deductions that you might lose when married filing separately. If you are relying on any of those credits and deductions then it is not beneficial for you to file separately. Although, filing married as separately can let you enjoy a great help in special circumstances, but it must be noted that your other tax breaks will get limited. You might not be able to be eligible for additional tax breaks that you are counting on. The credits and deductions that may be lost when married filing separately include:
- The Child Care Tax Credit
- The Earned Income Tax Credit
- The Adoption Credit
- Tax-Free Exclusion Of U.S. Bond Interest
- The Credit For The Elderly And Disabled
- Tax-Free Exclusion Of Social Security Benefits
- The Deduction For College Tuition Expenses
- The Student Loan Interest Deduction
- The Deduction For Net Capital Losses
- The American Opportunity Credit And Lifetime Learning Credit
- Traditional Ira Deductions
- Roth Ira Contributions
In a nut shell, if one of the spouses chooses the option to itemize, then the other spouse should also go for it. It is very important now as the new tax code has almost doubled the standard deduction for all filing statuses. Therefore, filing jointly could be more beneficial than ever before. If you don’t know the latest tax rates and tax brackets, you can ask Black Ink for the best tax preparation filing services near you in USA. We are expert in providing timely and accurate tax preparation services to individual and business clients.
Tax Rates & Income Brackets for Married Filing Separately:
For taxes due April 15, 2020, following chart will be followed as 2019 tax brackets for married couple filing separately:
New Tax Rates & Brackets For Married Filing Separately (2019)
Taxable Income Range
Tax Amount Due
|$0-$9,700||10% of taxable income|
|$9,701-$39,475||$970 + 12% of the amount over $9,700|
|$39,476-$84,200||$4,543 + 22% of the amount over $39,475|
|$84,201-$160,725||$14,382.50 + 24% of the amount over $84,200|
|$160,726-$204,100||$32,748.50 + 32% of the amount over $160,725|
|$204,101-$306,175||$46,628.50 + 35% of the amount over $204,100|
|$306,176+||$82,354.75 + 37% of the amount over $306,176|
Tax Rates & Income Brackets for Married Filing Jointly:
For taxes due April 15, 2020, following chart will be followed as 2019 tax brackets for married couples filing jointly:
New Tax Rates & Brackets For Married Filing Jointly & Qualifying Widow/ers with Dependent (2019)
Taxable Income Range
Tax Amount Due
|$0-$19,400||10% of taxable income|
|$19,401-$78,950||$1,940 + 12% of the amount over $19,400|
|$78,951-$168,400||$9,086 + 22% of the amount over $78,950|
|$168,401-$321,450||$28,765 + 24% of the amount over $168,400|
|$321,451-$408,200||$65,497 + 32% of the amount over $321,450|
|$408,201-$612,350||$93,257 + 35% of the amount over $408,200|
|$612,351+||$164,709.50 + 37% of the amount over $612,350|
Is It Better To File Jointly Or Separately As Married In USA?
Use Black Ink help to prepare and file your tax return both separately and jointly to compare the benefits of each. Our representative will help you to estimate the benefits of both methods to file taxes as married couple. Then make a choice to finally pay taxes in USA. The IRS has already announced January 27 as the starting date for filing individual returns. So if you are still not sure whether to file joint or separate taxes, Black Ink is here to help you make a better choice for your tax planning.