Many married folks keep their finances separate but that doesn’t necessarily mean you should file taxes separately too.
There are a few good reasons to file a joint return. Primarily a joint return usually helps you get a lower tax rate. This is dependent on a whole lot of variables, but usually if one spouse earns significantly more than the other and there are qualifying deductions and credits available: then it saves money.
Here are just a few credits you may miss if you file separately.
- Tuition and fees deduction
- Adoption Tax Credit
- American Opportunity Credit
- Lifetime Learning Credit
- Student Loan Interest Deduction
- Child and Dependent Care Credit
- Earned Income Credit
Obviously, you should see a qualified tax professional to help you decide whether filing joint or separate makes the most sense. I usually recommend that married people don’t keep their finances separate, because being on the same page about finances is very important to a healthy marriage. However, there are times that filing separately makes sense, even if you are as tight as Henry VIII and Anne Boleyn.