Virtually all married couples file their taxes jointly, and who can blame them? It’s usually easier to prepare one tax return than two, and it almost always results in a lower tax bill than filing separately. But sometimes, using the married filing separately tax status to split up those returns might make sense financially. Here's how it works and when it could benefit you. Show What is married filing separately?Married filing separately is one of five tax-filing statuses available to taxpayers. Under the married filing separately status, each spouse files their own tax return instead of one return jointly. Instead of combining income, each person separately reports income and deductions. How married filing separately worksAlthough most married couples file jointly, they can choose the married filing separately status if they want. There are rules to follow for filing separately, though.
Nonetheless, in the right circumstances, being married and filing separately could save you money. Here are a few things to think about if you’re considering whether it’s right for you. Student loans
Medical expenses
Complicated spouses
What’s yours is mineIf you’re thinking seriously about filing separately, there’s one more thing to understand: Even if you do the math and determine you’ll pay less by filing separately, state law might throw a wrench in your plans. That’s because if you live in a community property state — Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin — anything couples earn generally belongs to both spouses equally. Couples filing separately there each have to report half of the income both spouses earned, which could nullify most of the advantages of filing separately. Take charge of your financial life right now
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