Love and Paperwork: What Does It Mean to Be Married and File Single?Published:
So, it’s got some tax advantages, but now my question is “how do you bring this up at dinner?”
When couples get married, they typically file their income tax returns jointly. This is known as the married filing jointly status, and it offers many tax benefits, including lower tax rates and higher deduction thresholds.
However, in some cases, couples may choose to file their taxes separately as single filers, even though they are married.
Why would someone consider filing as single when they are married?
While married individuals are required to file their tax returns as either married filing jointly or as married filing separately, some may wonder if it is possible to file as single, given certain circumstances. There are several reasons that may lead a married person to consider filing as single, each of which can have differing implications on their tax situation.
One reason why a married person might consider filing as single is if one spouse has a lower income and a significant amount of deductible medical expenses. Medical expenses are only deductible if they exceed a certain threshold, and filing separately with lower incomes may result in being able to meet that threshold. In such cases, filing separately could provide a higher tax benefit compared to filing jointly.
Tax Brackets for Filing in 2024
If you are married but considering filing as single for your 2023 federal income tax return, it’s important to understand the tax implications and requirements for each filing status. The Federal Income Tax Brackets for 2023 are expected to be released by the IRS in late 2022, so it’s helpful to review the 2022 tax brackets as a guideline.
For an individual filing as single, the taxable income requirements for the 2022 tax year are as follows:
- For those earning up to $9,950, the tax rate is 10%
- For those earning over $9,950 but not over $40,525, the tax rate is 12%
- For those earning over $40,525 but not over $86,375, the tax rate is 22%
- For those earning over $86,375 but not over $164,925, the tax rate is 24%
- For those earning over $164,925 but not over $209,425, the tax rate is 32%
- For those earning over $209,425 but not over $523,600, the tax rate is 35%
- For those earning over $523,600, the tax rate is 37%
Joint Return vs Separate Return
Deciding which option to choose can have a significant impact on your tax liability and financial situation. In this article, we will explore the differences between filing a joint return and filing separate returns, to help you determine which option is best for you and your spouse.
Advantages of filing a joint return
Filing a joint return generally provides several benefits.
First and foremost, filing a joint return simplifies the process. Couples only need to file one tax return instead of two, which can save a significant amount of time and effort. Joint filers are also likely to face fewer problems with tax preparation since the filing process is generally less complex.
Another advantage of filing jointly is the tax benefits. Specifically, married couples who file jointly can take advantage of a higher standard deduction, meaning they can reduce their taxable income by a larger amount. This can result in a significant tax savings. Additionally, they may be eligible for larger income thresholds, meaning that they can earn more money before they move to the next tax bracket.
Joint filers also have access to multiple tax credits, including the Earned Income Tax Credit, Child and Dependent Care Tax Credit, and Education Tax Credits. These credits can help to reduce a couple’s overall tax liability, potentially resulting in a larger refund or lower tax bill.
Lastly, filing jointly can potentially reduce the likelihood of an audit. The IRS tends to focus on returns with errors or discrepancies, and couples who file separately may have an increased risk of this occurring due to the potential for conflicting information. Filing jointly eliminates this chance by including all of the couple’s combined information on a single return.
Disadvantages of filing a joint return
While filing a joint return offers many benefits for married couples, there are also some potential disadvantages to consider before making this decision.
One of the biggest drawbacks is that the income of both spouses is combined on a joint return, which can push the couple into a higher tax bracket. This can result in a higher overall tax bill as they may lose out on certain deductions or credits they would have qualified for if they had filed separately.
Another concern is the issue of liability. Both spouses are held responsible for any mistakes or errors on the return, even if the mistake was made by one spouse. This means that one spouse may be held liable for penalties or fines if the other makes a mistake on the return.
Additionally, some deductions or credits may be limited for joint filers. For example, the deduction for student loan interest may be reduced or eliminated for higher-income joint filers. This can further increase their overall tax bill and decrease any potential benefits of filing jointly.
Finally, if the couple divorces or separates, there may be complications with their joint tax return. They may need to file separately for previous or future years, which can result in additional paperwork and potential confusion.
Advantages of filing separate returns
Married couples have the option to file separate returns instead of filing jointly. While it may not be the most common way to file taxes, there are certain situations where it might be advantageous to file separately.
One of the main advantages of filing separate returns is to simplify complex tax situations. For example, if one spouse has a significantly higher income or a business with complicated tax liabilities, filing separately can help avoid any issues or confusion. It can also be beneficial if one spouse has a lot of deductions, such as business expenses or investment losses, that might be difficult to calculate accurately with joint filing.
Another advantage of filing separately is to protect one spouse from the other’s tax issues. For example, if one spouse has unpaid taxes or other tax liabilities, filing separately can help avoid any joint liability. This can be especially important in situations like divorces, where one spouse may not want to be held responsible for the other’s tax issues.
Filing separately can also be beneficial when you or your spouse have large out-of-pocket medical expenses. If one spouse has significant medical expenses, those expenses can only be deducted if they exceed a certain percentage of the couple’s joint income. However, if you file separately, it’s possible to deduct the expenses fully if they meet the income threshold for that filing status.
Finally, another reason to file separately is when you’re concerned that filing jointly would place you in a higher tax bracket. When you file jointly, the combined income of both spouses is considered, which can push the couple into a higher tax bracket. However, filing separately might result in a lower overall tax bill for the couple if both spouses have similar incomes.
Disadvantages of filing separate returns
While there are some advantages to filing separate tax returns when married, there are also several disadvantages. One of the biggest downsides of filing separately is the loss of various tax benefits and deductions.
Married filing separately taxpayers only got a standard deduction of $12,950 in 2022. Filing jointly? Well, that’s $25,900 in standard deductions. Going it alone means you don’t get as much of the standard deduction available. That could mean more paperwork.
Additionally, separate filers are not eligible for several tax credits and deductions that joint filers can receive. For example, the Earned Income Tax Credit, American Opportunity and Lifetime Learning Education Tax Credits, and the Child and Dependent Care Tax Credit are not available to separate filers.
Separate filers also cannot take the deduction for student loan interest, which can be a significant tax benefit for those paying off student loans. Furthermore, separate filers are usually limited to a smaller IRA contribution deduction, which can limit their ability to save for retirement.
Watch out investors! The capital loss deduction limit has been chopped in half, leaving those with investment losses feeling the pain. When filing separately, the limit is a mere $1,500, and even joint returns are capped at $3,000. Don’t let these limits catch you off guard!
Requirements for Filing Single if Married
When it comes to filing taxes, married couples have a few different options for their filing status. While most married couples choose to file jointly, some may choose to file separately, and others may wonder if they can file single if they are married. In this article, we will discuss the requirements for filing single if married and the factors to consider to determine the best filing status for your tax situation.
Taxable Income Requirements for Filing Single if You Are Married:
If you are married but want to file as a single taxpayer, you must first meet certain taxable income requirements set by the federal government. Taxable income refers to the amount of income that is subject to federal income tax.
For the 2022 tax year, the taxable income requirements for filing single if you are married can vary depending on your age and filing status.
For taxpayers under 65 years old, taxable income of
- Up to $10,275 is taxed at a rate of 10%
- From $10,276 to $41,775 at a rate of 12%
- From $41,776 to $89,075 at a rate of 22%
- From $89,076 to $170,050 at a rate of 24%
- From $170,051 to $215,950 at a rate of 32%
- From $215,951 to $539,900 at a rate of 35%
- More than $539,900 at a rate of 37%
It’s important to note that in addition to meeting the taxable income requirements, you must also meet other requirements in order to file as a single taxpayer when you are married. These requirements include being separated from your spouse or living apart for the entirety of the year, having a dependent child, or being legally separated according to your state’s laws.