Should My Partner and I File Our Taxes Jointly or Separately?

New York City tax preparation can be a stressful experience. Tax professionals are there to make things much easier, but there are still several decisions to make when tax season rolls around. One of the first is whether or not you and your partner should file jointly. Get ahead of tax season stress-free! Click here to visit this website for expert New York City tax preparation services and maximize your returns today.

Married couples have the option to file jointly or separately. Tax professionals typically recommend filing together, and the IRS encourages this by providing several tax benefits. But the right path for you and your partner depends on many factors.

Why Filing Joint Taxes is Often the Go-To for Couples

One of the biggest reasons to file jointly is to take advantage of tax breaks. Couples can receive one of the largest standard deductions available. The deduction can significantly reduce your joint taxable income, lowering your tax bill.

In 2024, the standard deductions total $27,700. But if you were to file separately, you would only take the individual standard deduction of $13,850.

Several tax credits are only available to couples who file jointly. For example, filing jointly may qualify you for the Earned Income Tax Credit, American Opportunity and Lifetime Learning Education Tax credits. You may also be eligible for Child and Tax Dependent Care credits if you have children.

Other deductions can make filing jointly more appealing. For example, if you or your partner has student loans, you can deduct the interest to reduce your taxable income. The capital loss deduction limit also increases for joint filers, going from $1,500 to $3,000.

When you want to file taxes with your partner, go to New York City tax preparation experts to maximize your deductions and the benefits offered.

When Filing Separately Makes More Sense

Despite all the perks of filing jointly, there are instances in which couples may prefer to file separately.

One example is student loan repayment. Many repayment plans consider reported income from a tax return to determine payment amounts. Filing separately can make payments more affordable.

Some couples may also prefer to file separately when one person has out-of-pocket medical expenses to claim. Because IRS rules only let you deduct costs exceeding 7.5 percent of your adjusted gross income, filing separately is often the best way to claim most expenses.

Read a similar article about small business tax preparation here at this page.