Is it better to file jointly

This usually causes your taxable income and tax to be lower. However, this is only true if only one spouse is liable on a separate return. The best way to figure out whether married filing jointly or married filing separately will benefit you the most is to prepare your returns both ways.

Then, choose the filing status with the lowest net balance due or refund. If you choose married filing jointly, both of you can be held responsible for the tax and any interest or penalty due.

One spouse might be held responsible for all the tax due — even if the other spouse earned all the income. With all this in mind, most married taxpayers file a joint return, both for the savings it provides and for convenience.

Even the most perfect Nicholas Sparks couple has to fill out their Form at some point. But what does married filing jointly mean? And how is it different than married filing separately? Married filing jointly or MFJ for short means you and your spouse fill out one tax return together. You could file separately. If you just got married, congrats! But you may not be able to file jointly just yet. So if you got married on December 31 of last year or earlier, you can file together.

But if you got married on or after January 1 of this year, you must file separately this tax season. You and your spouse still have to report your income and list deductions and credits.

If you moved, be sure to notify the IRS of your address change by filing Form Well, make sure you tell the Social Security Administration so the name next to your Social Security number matches the name on your tax forms. But make sure you take care of the name change by next year. If your spouse passed away during the past tax year, you can file jointly for that year. After that, you have to file as a qualifying widow or widower, head of household or single filer.

You can always file separately. Basically, our rule of thumb is this: File separately when it saves you money. But there are some circumstances in which this is the case, like these:. The amount you and your spouse earn determines whether filing jointly is the best option for your taxes. Filing jointly works better for couples when one person makes more money than the other.

Couples who make roughly the same amount of money may have to deal with the marriage penalty. This penalty isn't an actual fine that occurs, but it can result in a couple paying more tax than they would if they filed separately.

You can always calculate your taxes for both categories, separately and jointly, to determine which is better. If you live in a common property state, it may be better for you to file jointly. If you live in a common property state, the state will view your property jointly.

In some cases, this can include your income.