Can You File Taxes as Single If You’re Married? Here’s What Tax Experts Say
With Tax Day fast approaching, understanding your tax filing status is – but not always easy to comprehend. For instance, if you’re married, you can file jointly, or separately.
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“While most married couples benefit from filing together thanks to the tax breaks the IRS offers, there are times when filing separately may be the better choice,” TurboTax explained on its website.
This is how the Internal Revenue Service (IRS) breaks it down:
Married filing jointly: “If a taxpayer is married, they can file a joint tax return with their spouse. When a spouse passes away, the widowed spouse can usually file a joint return for that year,” according to the IRS.
Married filing separately: “Married couples can choose to file separate tax returns. When doing so, it may result in less tax owed than filing a joint tax return,” the IRS noted.
Now, the “single” filing status is for taxpayers who are unmarried, divorced or legally separated under a divorce or separate maintenance decree governed by state law, the IRS added.
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What are the Benefits of Filing Separately?
As Empower explained, there are a few scenarios where married filing separately could be beneficial.
“These include when both spouses have about the same amount of income and when combining income pushes a couple into a higher tax bracket,” according to Empower.
In addition, Empower listed a few other situations where it could also have advantages:
If you and/or your spouse have deductions based on Adjusted Gross Income (AGI), for instance, high medical expenses are a common example of deductions subject to AGI limits.
If you and/or your spouse have income-based student loans.
If you live in a community property state.
If you are not willing to file together- married filing separately can also accommodate couples who are in the process of divorce or separation finances.
“In general, choosing the married filing separately status may make sense when couples without dependents have large, itemized deductions or are separating,” Empower added.
Are There Any Drawbacks?
One of the biggest disadvantages to married filing separately is that you may lose potential tax breaks, credits and deductions, as Empower noted.
These could include the Child and Dependent Care Expenses credit, education tax credits, and student loan interest, as the interest paid on student loans may be tax-deductible if you’re married and file jointly.
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This article originally appeared on GOBankingRates.com: Can You File Taxes as Single If You’re Married? Here’s What Tax Experts Say
