Just married? How to know whether to file your taxes jointly or separately.
What could be more romantic than discussing taxes?
Tax season is officially behind us, but it's never too early to plan for next year, and a question you and your significant other may want to ask is: Should we file our taxes jointly or separately?
It's the age-old quandary couples face each year because of the benefits and drawbacks that come with each option. A simple coin toss to decide which route to take could end up being more costly or cause you to miss out on hefty tax credits and deductions, leading to a smaller tax refund.
For instance, the standard deduction for married couples filing jointly was $29,200 this year versus $14,600 for separate filers. For newlyweds who aren't yet homeowners this mattered a lot since it likely made more sense for them not to file an itemized return and take the standard deduction, said Tim Speiss, a certified public accountant and partner of EisnerAmper in New York.
But there are many more considerations to take into account before you make your final decision.
What does filing jointly mean?
If you're married you can choose whether you want to file a joint return or file two individual returns.
Filing a joint tax return means your income and your spouse's income get combined together. The joint income is subject to different tax brackets than single filers.
The Internal Revenue Service raised the thresholds for taxes filed this year to adjust for inflation.
Marginal tax rates for married couples filing jointly were:
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35% for incomes over $487,450
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32% for incomes over $383,900
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24% for incomes over $201,050
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22% for incomes over $94,300
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12% for incomes over $23,200
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10% for incomes less than $23,200
Marginal tax rates for individual filers:
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35% for incomes over $243,725
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32% for incomes over $191,950
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24% for incomes over $100,525
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22% for incomes over $47,150
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12% for incomes over $11,600
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10% for incomes less than $11,600
Importantly, filing jointly means you're both on the hook for the money you and your spouse owe to the IRS prior to your marriage.
What are the rules for married filing jointly?
In order to file a joint tax return in 2024, you had to have been legally married by Dec. 31, 2023. So as long as you got your marriage license in 2023, you were considered married in the eyes of the IRS.
But if you got divorced or legally separated from your spouse at any point during 2023, you're considered unmarried for the entirety of the year and cannot file a joint return.
Finally, to file jointly you and your spouse must both agree to it. That's why both signatures are required on the tax return.