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There are many reasons married couples may want to file their taxes jointly: a larger standard deduction, eligibility for more tax credits, and higher income thresholds to qualify for various tax benefits are just some examples. But in some cases, it can make sense for a married couple to file their taxes separately.
To determine the best filing status for you and your spouse, consider who qualifies to file separately, the pros and cons for doing so and your specific financial situation.
What is the married filing separately tax status?
Your tax filing status — single, married filing jointly, married filing separately, head of household or surviving spouse — is one of the first items you’ll fill out on your Form 1040. The status you choose can impact whether you have to file a return, how much you owe in taxes, the credits you can claim, your standard deduction amount and whether you get a refund.
If you check the box next to “married filing separately,” you’re indicating that you’re married but don’t want to file your taxes jointly with your spouse. Instead, your incomes, deductions and credits will be recorded separately.
Who qualifies for married filing separately?
To qualify for the married filing separately status, you must be married. The IRS considers you married for the whole year as long as you’re married on the last day (Dec. 31) of the tax year. If you haven’t received a final decree of divorce or separate maintenance, you’re still considered married in the eyes of the IRS.
If you’re eligible to file your taxes jointly, you’re also eligible to file as married filing separately. There aren’t any special rules that make you specifically eligible to file separately from your spouse.
There are special rules to consider if you live in a community property state: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin. Community property laws can affect what money counts as your income for your federal tax return, so it’s important to look into the laws of your specific state. For more information on state income taxes, find your state on this list.
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Cons of the married filing separately tax status
Usually, it makes sense for couples to use the married filing jointly tax status, rather than filing separately. Here are some reasons why:
- Couples who file separately don’t qualify for as many tax credits and deductions. For example, the child and dependent care credit and student loan interest deduction are generally off limits to couples filing separately.
- For various tax perks, income thresholds tend to be higher for married couples filing jointly, which means you can have a higher combined income but still qualify for tax benefits you may not qualify for if you file separately.
- If you file jointly, both spouses may be able to contribute to IRAs even if only one is working (the non-working spouse would contribute to a so-called spousal IRA). That’s not the case if you file separately.
- If you file separately and one of you itemizes deductions, the other spouse can’t use the standard deduction; they also must itemize.
Tax Tip
If you’re married and you file separately, and you lived with your spouse at any time during the year, then you can’t contribute to a Roth IRA if your modified adjusted gross income is $10,000 or more. In contrast, a married couple filing jointly can have modified adjusted gross income as high as $230,000 (in 2024) and each spouse can still contribute the full amount to their respective Roth IRAs.
Pros of the married filing separately tax status
Sometimes, it may make sense for a couple to file their tax returns separately.
- For example, if you or your spouse has an income-based student loan repayment plan, filing separately might mean you have a lower adjusted gross income (AGI), in which case you’d be able to pay less towards your loans for the year than if you were married filing jointly with a combined income. Depending on your financial situation, that may be the best move in a given year.
- Another example: Filing separately can make sense if you or your spouse have out-of-pocket medical bills. If you itemize your deductions, you can deduct medical and dental expenses that add up to more than 7.5 percent of your AGI — filing separately could mean the spouse with the medical bill has a lower AGI than if they filed jointly.
There are other reasons couples may want to file separately even if it doesn’t save them money, such as if they’re preparing for a divorce or want to keep their liabilities separate.
Married filing jointly vs. separately: How to choose
For the vast majority of married couples, it’s likely smarter to claim the married filing jointly filing status.
That said, it makes sense to consider you and your spouse’s unique financial situation. If one of the above situations applies — one of you has an income-based student loan repayment plan or medical bills, or you have another reason for keeping your finances separate — consider filing separately.
You can also calculate what the tax bill would be if you file jointly or separately using the current income tax rates for each. If you’re having trouble, consider speaking with a tax professional to ensure you owe the least amount possible and even potentially get some money back via a refund.
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