Hey ,
Do you know that you can choose to file taxes jointly or separately every year as a married couple?
It's true!
While filing jointly is more common, there are certain scenarios where filing separately may offer a bigger tax break. However,
there are trade-offs to consider when filing taxes separately.
Reasons to file jointly:
- You'll generally pay less in taxes when you file jointly, as you'll be eligible for more tax credits and deductions.
- You'll avoid the headache of determining who gets to claim which deductions and credits, such as the child tax credit and education credits.
- You'll have a higher income threshold for certain tax benefits, such as IRA contributions.
Reasons to file separately:
- If you or your spouse have a lot of medical expenses, you may be able to deduct more of those expenses if you file
separately.
- If one spouse has a lot of unreimbursed business expenses, filing separately can allow that spouse to claim more of those expenses.
- If you or your spouse have a high income, filing separately may help you avoid certain phase-outs of
tax benefits and deductions.
- Some couples just like to keep their monies separate. For example, when one spouse owns a business and pays quarterly taxes, it may be desirable to keep incomes separate.
It's important to weigh the pros and cons of both options before deciding which one is right for you. Remember, taxes must be treated individually, in this case, on a family basis.
Do you need anything for your business? Be it tax return filing, bookkeeping, or accounting? Contact my team at +1 202-618-1297 or click the link below.
I would be happy to discuss your options and help you make the best decision for your business.
Thank you for considering me for your tax return filing needs. I look forward to working with you.
