Tuesday, May 11, 2010

Which is better Filling taxes as married Jointly or Married separate?

If you have income and your spouse does not have income or has a very little income, then it is better to file as Married Filing Jointly. If both of you have almost equal income, then it won't make much difference. Also may credits and deductions are not available if you file Married Filing Separately.


So normally you should file as Married Filing Jointly, unless there is a compelling reason to file otherwise.





This is from IRS publication 17: Your Federal Income Tax.





Tip. If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Choose the method that gives the two of you the lower combined tax.Which is better Filling taxes as married Jointly or Married separate?
MARRIED FILING JOINT BECAUSE BECAUSE YOUR STANDARD DEDUCTION INCREASES AND YOUR TX DECREASES. MARRIED FILING SEPARATE IS THE HIGHEST TAX BRANCH THERE IS, BUT OF COURSE IT ALSO DEPENDS ON HOW MUCH YOU ALL MADE AND HOW MANY DEPENDANTS YOU HAVE.Which is better Filling taxes as married Jointly or Married separate?
This is a very touchy subject.





It is generally better to file jointly speaking from a strictly monetary view point...there are very rare circumstances when it is better to file otherwise.





Now, from a different point of view...(almost) any time you sign a tax return with a spouse you are liable for the entire amount of the tax liability...no matter if it was created by you or your spouse. And, the IRS can collect it from either person.





There is no simple answer to this question...but, if you only want to know about the total tax...most of the time it is better to file jointly.





I hope this helps.
MFJ is almost always equal to or better than MFS.


However, if your tax return is prepared on a computer, most software can do a simple comparison for you, just to make sure.

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