While the IRS allows couples to choose whether to file jointly or separately, couples may have many advantages when filing jointly. Let’s look at a few reasons behind this:
Since the tax rate ranges for married filers are different than single filers, couples that combine incomes could bring a higher earner into a lower tax bracket.
The IRS gives couples filing jointly the largest standard deduction each year, which allows couples to deduct a significant amount from their taxable income. In 2021 the standard deduction for a couple filing jointly is $25,100 and for married filing separately or single it was $12,550. Couples who file jointly can usually qualify for multiple tax credits such as the:
Separate filers are usually limited or even disqualified from deductions like these.
The amount that you can contribute to a Roth IRA and your eligibility can be impacted by your living arrangement, income and tax-filing status. Married couples filing separately can’t make Roth IRA contributions if your income is more than $10,000 and you lived together at any time during the year.
Let Anderson, Adkins & Company help you explore the variables and filing status that will save you the most money come tax season. Our expert team is knowledgeable and responsive, offering customized, complete solutions designed around your needs. Contact us today to get started: 706-288-2000 or .