Married file jointly

If you or your spouse had medical bills last year, you may be able to deduct some of it. How much you can deduct depends on how much money you make. Basically, the more income you make, the less you can deduct from your medical expenses.

So if your spouse makes a lot more than you do and you file jointly, your medical deduction will be a lot less than if you file separately. Figuring out which way works best can be mathematically intense.

Most tax filers can substantially lower their taxable income with that. Tax credits are like gift cards from the IRS—they apply to your final tax bill and reduce it dollar-per-dollar.

Call it a late wedding present or an anniversary gift , but the IRS gives more tax credits to married couples filing jointly than to couples filing separately. Now, just to be clear: You can get these credits if your filing status is married filing jointly, single or head of household. When you file jointly, you only have to fill out one tax return—not two. When you file separately, you have to follow certain rules that can make your day a little thornier.

For example, only one of you can claim your child as a dependent. No cherry picking. This usually causes your taxable income and tax to be lower.

However, this is only true if only one spouse is liable on a separate return. The best way to figure out whether married filing jointly or married filing separately will benefit you the most is to prepare your returns both ways.

Then, choose the filing status with the lowest net balance due or refund. If you choose married filing jointly, both of you can be held responsible for the tax and any interest or penalty due. For married taxpayers filing jointly, they can use these new tax brackets to figure out how much tax they can expect to pay this coming tax season.

The other rates are as follows:. An excellent way to find out if you should file jointly or separately with your spouse is to prepare the tax return both ways. First, double-check your calculations and then look at the net refund or balance due from each method. That would meet the 7. Filing separate returns in such a situation may be beneficial if it allows you to claim more of your available medical deductions by applying the threshold to only one of your incomes.

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