Saying yes to your wedding day was the easy part. Now that you are a married individual you should try figuring out if it makes sense to file your taxes together or separately.
It’s the age-old difficulty each year that couples face because of the drawbacks and benefits that comes with a different option. As simple as a coin toss to decide which path you will take could end up being more expensive or cause you to miss out on hefty tax credits and deductions, leading to a smaller tax refund.
Tim Speiss, a certified public accountant and partner of EisnerAmper in New York said that the standard deduction for married couples that are planning on filing jointly is around $25,900 this year versus, and for the separate filers they will get $12,950. Meanwhile, for newlyweds who aren’t homeowners yet this matter is important since it is more likely to make sense for them to not file an itemized return and take the standard deduction.
For you, there are a lot more considerations to take into account before you make your very final decision without regrets.
What is jointly filing
Unless you are a married individual, the only way that you can file your taxes is to file them on your own. You can choose whatever you want either filing a joint return or filing two individual returns, this is if you are married.
If you are filing a joint tax return that means that your income and your spouse’s income will be combined to get the joint income is subject to different tax brackets than those single filers.