Should Couples File Income Taxes Jointly or Separately?

Dual income families face a unique set of challenges when it comes to filing income taxes. There are a number of factors couples should consider before deciding whether to file income taxes jointly or separately. Generally, no two situations are identical, and there are exceptions to every rule.

You might want to file jointly if…

• Averaging your two incomes brings you down to a lower tax bracket

• You're filing separately hoping to eliminate the "marriage penalty" (it won't)

• You are eligible to claim credits such as:

  • Child and Dependent Care Credit

  • Adoption Expense Credit

  • American Opportunity Tax Credit

  • Lifetime Learning Credit

• You want to avoid limitations on itemized deductions and personal exemption phaseout

• You receive social security benefits

You might want to file separately if…

• You don't want to be liable for your spouse's tax obligations within combined incomes

• One spouse has medical expenses, casualty losses, or miscellaneous itemized deductions that could be reduced by a percentage of adjusted growth income

Key Consideration

The only way to know for sure which filing option is best for you is to calculate the taxes and deductions for each option and compare the results. The answer to whether couples should file jointly or separately typically depends on their individual circumstances rather than a universal rule.