Tax returns are something not many people look forward to doing. Despite the fact that many people believe that filing your tax return jointly could make your tax refund larger, there might be exceptions. It is true that on certain occasions you may benefit from tax credits or deductions. However, it will depend on the personal situation each couple has. That is why it is always best to ask a tax preparer if you need help with your filing process and how to make the most of it.
If you are new to the filing process, you need to know this. If you are married, you can opt for two types of filing. Filing separately is the status for those who prefer to report the money they have earned and any tax credit or deductions individually. Whereas, some married couples prefer to report everything together a get a single tax return. It could somehow save time for you because you can help each other and it could be easier to bear the burden.
Which filing status grants taxpayers more money in their tax refunds?
Filing jointly when you are married allows you to get more money. Because you can benefit from more tax deductions or credits. According to the Internal Revenue Service, to file jointly you must be legally married by the end of the tax year. Those couples who live together and are not married cannot do it. It is not possible because the IRS does not allow it. Getting married will allow you to reduce the amount of taxes you have to pay to the IRS in your tax return.
If you are married, you will benefit from a higher standard tax deduction when filing jointly. For instance, if you do your tax return on your own, you can earn up to 12,000 dollars. Whereas doing it together allows increases the standard deduction to $24,000. There are specific deductions and credits that are only for those couples who file together. Maybe, you can do it together and save time, or take turns to do it. You can file it this year, and your husband or wife can file it the next one.
Why is it better to file your tax return jointly?
Believe it or not, those couples who choose to file their tax return jointly will have fewer rules to pay attention to. The more rules you have, the more complex it will be. Apparently, there are more advantages if you decide to file jointly. But there are some advantages in some cases if you do it separately. Using a tax program will allow you to know if you can save more money by doing it individually. If that is the case, file your return individually to get a larger tax refund check.
Never file jointly if your spouse is lying in their tax return. You will then become accountable for this illegal action. Some people have not filed their 2020 or 2021 tax returns. If your husband or wife has not filed them yet, file yours individually. Some people may also benefit from a tax deduction and having a bigger income may affect getting it or not. If your spouse’s income is too high you may not benefit from a medical debt you may want to claim for example. Anyway, check first what gives you a larger check as long as your spouse is not lying.