In , the IRS allows taxpayers to deduct qualified unreimbursed medical care expenses for the year that exceed 7. If both you and your spouse earn an income and you file jointly, your medical expenses would have to be higher in order to be able to make any deductions.
But if you file separately — so your tax return reflects just one or your salaries — "you will reach the threshold faster and be able to deduct more of those expenses earlier on," says Guglielmetti.
You're going to divorce: If you think you're going to separate from your spouse and want "to avoid liability with your spouse for taxes on their income," you should consider filing separately, says Edward Zollars, a Phoenix, Arizona-based certified public accountant CPA. When filing jointly, "each spouse is responsible for the entire tax due," adds Guglielmetti. Filing separately keeps those responsibilities separate, and you're only responsible for your own. If you would save more on your taxes by filing separately: This may seem like a no brainer, but if you run the numbers and filing separately would save you more money, then you should probably go that route.
To find out which status would benefit you the most, "you can run a side-by-side comparison — or have your tax preparer run it for you — with the outcomes of each filing status," Guglielmetti says. If you're still unsure of which status makes the most sense for you, you should "consider getting expert tax advice from a CPA or Enrolled Agent," which is a federally-licensed tax practitioner, says Kaleb Paddock , a certified financial planner at Ten Talents Financial Planning.
Like this story? Skip Navigation. Jennifer Liu. Filing joint typically provides married couples with the most tax breaks. Another reason to consider filing together is that joint filers are often eligible to receive meaningful savings in the form of tax credits, such as: The Earned Income Tax Credit EITC , which is designed to "benefit for working people with low to moderate income.
The American Opportunity and Lifetime Learning Education Tax Credits , which reduces the amount of taxes owed by those who are attending college, or have a spouse or child with college or graduate school tuition costs. Married people typically choose to have less withheld because they can claim exemptions for two people when it comes time to file, reducing the overall amount of tax they must pay.
However, single people who will owe more taxes, as well as married people with multiple sources of income and taxpayers who—for whatever reason—would like more money withheld, use the single withholding rate. At the same income, and with the same number of allowances, the single withholding rate withholds more taxes than the married rate. It is also worth noting that married people who use the single withholding rate on their Form W-4 are not required to claim the single filing status when they file their taxes.
What one claims on their Form W-4 is purely for withholding purposes. Of course, if one withholds too little, they will owe more taxes at the end of the year. In contrast, if one withholds too much, they will receive a tax refund. Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. Want the latest recommendations from Zacks Investment Research?
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