when couples file separately they must include their spouse s information on their returns according to the irs if you and your spouse file separate returns and one of you itemizes deductions then the other spouse will have a standard deduction of zero therefore the other spouse should also itemize deductions 3
although there are financial advantages to filing separately couples miss out on tax credits meant for couples who file jointly if you and your spouse both generated taxable income calculate your tax bill as a joint and separate filer before filing to determine which of the two will save you more money special considerationsif you live in community property states arizona california idaho louisiana nevada new mexico texas washington and wisconsin you may need to see a tax professional because the rules about separate incomes can be tricky 4in most cases it makes sense for married couples to file jointly especially since the tax cuts and jobs act tcja of 2017 was passed however there are exceptions including when one spouse has significant miscellaneous deductions or medical expenses standard deduction for married filing separatelyas a result of the tax cuts and jobs act tcja of 2017 the standard deduction rose substantially in the 2018 tax year 5a standard deduction is a portion of income that s not subject to tax thereby reducing taxable income the irs allows tax filers to take a standard deduction however the deduction amount is dependent on your filing status age and whether you are disabled or claimed as a dependent on someone else s tax return 6 the standard deduction for the 2023 tax year is as a result one spouse must have significant miscellaneous deductions or medical expenses for the couple to gain any advantage from filing separately the irs introduced direct file which allows qualifying taxpayers to file their federal tax returns directly for free the pilot is available to taxpayers who lived in arizona california florida massachusetts nevada new hampshire new york south dakota tennessee texas washington state and wyoming in 2023 refer to the irs website to see if you qualify 8married filing separately vs married filing jointlymarried filing jointly offers the most tax savings especially when spouses have different income levels if you use the married filing separately status then you may be unable to take advantage of a number of potentially valuable tax breaks such as the following 910the child and dependent care credit is a nonrefundable tax credit used by taxpayers to claim unreimbursed childcare expenses childcare can include fees paid for babysitters daycare summer camps provided that they aren t overnight and other care providers for children under the age of 13 or dependents of any age who aren t physically or mentally able to care for themselves 1112the american opportunity tax credit aotc helps offset costs for post secondary education it was introduced in 2009 and requires that couples filing jointly have a modified adjusted gross income magi of no more than 160 000 to be eligible for full credit 13 couples who make 160 000 to 180 000 meanwhile can apply for a partial aotc 14the maximum reward is an annual credit of 2 500 on qualified educational expenses for the first four years that a student attends an approved postsecondary institution 14the lifetime learning credit llc allows parents to claim the amount spent on tuition and receive a 20 tax credit on the first 10 000 of qualified education expenses resulting in savings of up to 2 000 on each tax return qualifying tuition includes undergraduate graduate or professional degree courses 15there is an income limit to qualify for the llc 15 the magi is 80 000 for 2023 for single filers and 160 000 for married couples filing jointly 716a couple who files a separate tax return can also take deductions for their contributions to a traditional individual retirement account ira but the income limits for taking them as a deduction if they or their spouse has a retirement plan at work are much lower than for those who file jointly 17 the maximum contribution permitted in 2023 is 6 500 and 7 500 for those aged 50 and over 18any expenses related to the adoption of a qualifying child can be taken if couples file jointly but probably not if they file separately check with a tax expert 19 the maximum credit allowed for adoptions is the total amount of qualified adoption expenses up to 15 950 in 2023 7benefits of married filing separatelytax bills aside there is one scenario in which married filing separately may be especially wise if you don t want to be liable for your spouse s taxes and suspect that they are hiding income or claiming deductions or credits falsely then filing separately is probably the best option 6signing a joint return means that both spouses are responsible for the accuracy of the return and for any tax liabilities or penalties that may apply by signing your return and not a joint one you are only responsible for the accuracy of the information on your return and for any tax liability and penalties that may ensue 6