If you’re married, you can file your taxes by submitting a joint return or filing them individually. While most couples choose to combine incomes, credits, and deductions during their tax return preparation, it may be better to file separately in some cases. Regardless of how you’ve filed in previous years, you should go over each option with your accountant, as recent tax law modifications may change your filing decision. Here’s an overview of what you can expect from both scenarios. 

Should You File Separate or Joint Tax Returns?

Filing Separate Tax Returns 

There are several reasons a married couple may decide to file individual tax returns. This is particularly beneficial if one spouse earns a low income and has quite a few medical expenses. As of 2019, medical bills must exceed 10% of a person’s adjusted gross income before they can be deducted for tax purposes. Filing separately makes it easier to reach this threshold. Choosing this filing status also allows spouses to keep their finances separate. Each spouse is only responsible for ensuring the accuracy of their own tax return preparation and tax liabilities. 

Filing Joint Tax Returns 

Joint filing makes you eligible for a variety of tax breaks, including the Earned Income Tax Credit, Child Care Tax Credit, student loan interest deduction, tax-free exclusion of Social Security benefits, deductions for college tuition expenses, and deductions for retirement account contributions. Doing separate tax return preparations can limit or disqualify you from these credits and deductions. Additionally, merging incomes can bring the higher-earning spouse into a lower tax bracket. However, you can also be held accountable if your spouse is found to be engaged in any questionable tax filing practices, so you may want to have an accountant oversee the filing process to be safe. 

If you need help filing your taxes jointly or separately, turn to the accountants at Joe Heard, CPA in Checotah, OK. They offer high-quality tax return preparation services designed to maximize deductions and will thoroughly assess your calculations to see which filing status benefits your household the most. With more than 15 years of industry experience, they have smoothly guided residents in the area through tax season. To set up an appointment, call (918) 473-1492, or visit their website to send an inquiry online.