Married Filing Jointly vs. Separately: How Should You File?
Disclaimer:
My Banyan Life is not a tax advisory service, and the information in this article is for general informational purposes only. It should not be considered tax, legal, or financial advice. Tax laws and regulations change frequently, and how they apply can vary based on your specific circumstances. We strongly recommend consulting with a licensed tax professional, CPA, or financial advisor for guidance tailored to your individual situation.
Getting married is one of life’s most joyful milestones—but it also comes with a lot of practical decisions. One of the biggest financial choices you’ll face as a couple is how to file your taxes. Should you file jointly, or should you file separately?
Before we dive into the details, let’s be clear: you should always speak with your CPA or tax professional before deciding how to file. Taxes are complex, and your specific situation—your income levels, deductions, state of residence, and other personal factors—can significantly impact which filing status benefits you most.
Still, it helps to understand the basics so you can have a more informed conversation with your advisor. Let’s break it all down.
Why Marriage Impacts Taxes
When two people say “I do,” their finances become interconnected in the eyes of the IRS. Your filing status changes, and with it, your eligibility for certain deductions, credits, and income brackets.
Whether you’ll owe more or less taxes after getting married depends on several factors, including:
- Differences in income levels
- Types of deductions you qualify for
- Whether either of you has children or other dependents
- Student loans or other debt repayment plans
- The state you live in (especially if it’s a community property state)
Getting this decision right can affect everything from how much tax you owe, to your refund, to your eligibility for financial aid or benefits.
The Five IRS Filing Statuses
Before we zoom in on Married Filing Jointly vs. Separately, here’s a quick refresher on the five IRS filing statuses:
1. Single – You’re unmarried, divorced, or legally separated.
2. Married Filing Jointly (MFJ) – You and your spouse file one return together, reporting your combined income and deductions.
3. Married Filing Separately (MFS) – You each file your own return, reporting your own income and deductions.
4. Head of Household – You’re unmarried and support a dependent (must meet certain criteria).
5. Qualifying Surviving Spouse – You’ve lost your spouse within the last two years and have a dependent child.
For married couples, the IRS lets you pick between filing jointly or separately. The right choice isn’t always obvious.
Married Filing Jointly: The Default (and Often Best) Option
Most couples benefit from filing jointly. In fact, according to [H\&R Block](https://www.hrblock.com/tax-center/filing/personal-tax-planning/married-filing-jointly-vs-separately/), “you’re almost always better off Married Filing Jointly,” because many tax advantages disappear when you file separately.
Why Joint Filing Often Wins:
· Double the Standard Deduction:
For the 2024 tax year, the standard deduction for MFJ is \$29,200 (rising to \$30,000 in 2025). That’s a significant reduction in taxable income.
Bigger Tax Breaks:
- Filing jointly allows you to claim more generous income limits for various credits and deductions, including:
- The Earned Income Tax Credit
- American Opportunity and Lifetime Learning Credits
- IRA contribution deductions
- Child and Dependent Care Credit
Lower Tax Rates:
Combining your incomes into one return can land you in a lower joint tax bracket than filing separately.
Example:
Let’s say one spouse earns \$90,000 and the other earns \$25,000. Filing jointly puts you in a more favorable bracket than if the higher-earning spouse filed alone and couldn’t claim certain deductions.
When Filing Separately Might Make Sense
Filing separately is often considered a “worst-case scenario” by tax pros because it removes access to several valuable tax credits. But in some situations, it can work in your favor.
Situations Where Separate Filing May Help:
Medical Expenses Are High:
If one spouse has significant medical bills, filing separately might help them qualify for a deduction of expenses exceeding 7.5% of their Adjusted Gross Income (AGI). If both incomes are combined, that threshold could be too high to clear.
Liability Concerns:
If one spouse has concerns about the other’s financial or legal situation (back taxes, student loan defaults, etc.), filing separately can protect the innocent spouse from being liable.
Income-Based Repayment (IBR) Plans for Student Loans:
If you're on an IBR or PAYE plan, your required payment might increase based on household income. Filing separately can keep that payment lower.
Watch Out:
Filing separately disqualifies you from claiming:
- Earned Income Tax Credit
- Child and Dependent Care Credit
- Most education credits
- Student loan interest deduction (in many cases)
- Adoption credit
So, if you’re thinking about filing separately, weigh the savings against what you might lose.
Community Property States: An Extra Layer of Complexity
Live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin? Welcome to the world of community property laws, where things get extra interesting.
In these states, both spouses are considered to own all income and assets equally—unless specifically designated as separate property. This rule applies even if you file separately.
According to TurboTax tax attorney Rocky Mengle, “Medical bills paid from separate funds can only be deducted by the spouse who pays them, but the deduction is split between both spouses if they’re paid from community funds.” This can complicate medical deductions and income reporting.
In community property states, consult your CPA before even thinking about separate returns.
Don’t Forget State Taxes
Each state has its own rules. Some require that if you file a joint federal return, you must file a joint state return. Others are more flexible.
Some examples:
o California: You must file the same way on your state return as on your federal return.
o New York: Offers flexibility, but tax rates may vary.
o Texas: No state income tax—but if you’re doing business or own property in other states, those rules may apply.
Filing separately for federal and jointly for state (or vice versa) may not even be allowed in your state.
Other Things to Consider When You Get Married
Taxes aren't the only thing to update after saying "I do." Getting married can trigger a domino effect of changes, including:
o Withholding Adjustments:
Use the IRS’s [Tax Withholding Estimator](https://www.irs.gov/individuals/tax-withholding-estimator) to check if you need to update your W-4 forms. You don’t want to under- or over-withhold after a big income change.
o Name Changes:
If one spouse changes their name, report it to the Social Security Administration (SSA) before filing. Your tax return must match SSA records, or it may get rejected.
o Health Insurance:
You may be eligible for premium subsidies or need to update your employer plans. Filing jointly often helps with affordability calculations.
o Retirement Contributions:
Joint filers typically have higher income thresholds for IRA contribution deductions and Roth IRA eligibility.
Filing Tips for Newlyweds
1. Start Early
Don’t wait until the last minute—gather your documents and meet with a professional as early as possible.
2. Use Tax Prep Software
If you’re not working with a CPA, modern software (like TurboTax or H\&R Block) can walk you through scenarios for joint vs. separate filing. Many let you compare both options side by side.
3. Organize Your Financial Documents
Use your My Banyan Life account to store copies of your tax returns, W-2s, 1099s, deductions, and more. You can even collaborate with your spouse in the platform, securely uploading files to the Financial Planning or Tax Records branches.
4. Make Notes for Next Year
In your My Life Experiences section, jot down notes about this year’s tax filing process—what worked, what didn’t, and what to ask your CPA next time.
Choosing between Married Filing Jointly and Married Filing Separately is more than just a checkbox—it’s a decision that could save or cost you thousands. While most couples benefit from filing jointly, there are legitimate reasons to consider filing separately.
Remember: every situation is unique. Your best move? Talk to a trusted tax professional—then use My Banyan Life to safely store and organize your financial life, so tax season becomes less stressful each year.
P.S.
Already filed? Upload your returns to My Banyan Life and set reminders for next year. Future you will thank you.
Related Resources:
TurboTax Tips on Married Filing Status
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