## Contents There are additional optional benefits for tax filers if they file jointly vs file separately. These benefits are usually centered around childcare, but may lower the threshold for qualifying for other tax credits. ## Married but Filing Jointly Benefits - Larger [[standard deduction]] - [[Earned Income Tax Credit]] (easily qualify) - [[American Opportunity and Lifetime Learning Education Tax Credit]] - Exclusion or credit for adoption expenses - [[Child and Dependent Care Tax Credit]] Generally joint filers can earn a higher income and still qualify for certain tax breaks. When filing jointly, the one with the higher income gets to use the lower income earner's [[Standard Deduction]] as well as a more beneficial tax bracket. ## Married but Filing Separately - Automatically disqualified from above tax credits/benefits - Smaller IRA contribution deduction - Do not have access to [[student loan interest deduction]] - [[Capital Loss Deduction]] is smaller ($1,500 vs $3,000) ## When Does Filing Separately Make Sense? - **Medical expenses**: if one spouse has a large amount of out-of-pocket expenses, filing separately may help surpass IRS thresholds to deduct these costs - **Student loan payments**: if on an income-driven plan, filing separately would mean income is lower - **Separated finances**: divorcing ## Checklist - [x] Tag with `fleeting`, `permanent`, or `project` - [x] Tag with `legacy` if necessary - [x] Reference: [Should You And Your Spouse File Taxes Jointly or Separately - TurboTax](https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separately/L7gyjnqyM) - [x] Link to any existing notes