Marriage changes a lot of things—your last name (maybe), your living situation, and definitely your taxes. When tax season rolls around, you have a big decision to make: should you file jointly or separately? It sounds like a simple box to check, but the choice can significantly impact your tax liability, your bracket, and which deductions you can claim.
There is no single "right" answer. The best choice depends entirely on your unique financial picture. Let's break down the pros and cons so you can make a strategic decision that keeps more money in your pocket.
The Case for Filing Jointly
For most couples, filing jointly is the standard route because it usually results in a lower tax bill. When you combine incomes, you might bring some of the higher earner's income into a lower tax bracket. It’s a simple way to average out your earnings and potentially reduce what you owe overall.
Beyond the brackets, the IRS offers several tax breaks exclusively to joint filers. If you file separately, you generally cannot claim:
- The Child and Dependent Care Credit
- The Adoption Expense Credit
- The American Opportunity Credit
- The Lifetime Learning Credit
The proposed 2025 One Big Beautiful Bill Act (OBBBA) also introduces new deductions—like those for qualified tips, overtime, and seniors—that are currently off the table for separate filers.
Furthermore, filing separately creates hurdles for retirement savings and education. You may lose the ability to deduct IRA contributions if either spouse is covered by a workplace plan like a 401(k). You also can't exclude interest income from Series EE or I savings bonds used for higher education if you file separate returns.
When Filing Separately Makes Sense
So, why would anyone choose the separate route? While less common, there are specific scenarios where strategic separation pays off.
High Medical Expenses
If one spouse has significant medical bills, filing separately might yield a higher deduction. You can only deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI).
By filing separately, the spouse with the medical bills reports a lower AGI compared to the combined joint income. This makes it easier to surpass that 7.5% threshold and claim a larger deduction than you could on a joint return.
Liability Concerns
When you sign a joint tax return, you are "jointly and severally" liable. That means you are both responsible for the tax on your combined income, plus any interest or penalties. If the IRS audits your return and finds an issue, they can come after either of you for the full amount.
If you want to keep your tax responsibilities distinct—perhaps due to a separation or because you want to protect yourself from your spouse’s potential tax debts—filing separately ensures you are only responsible for your own taxes. While "innocent spouse" relief exists, it has limitations and can be difficult to claim.
A Note for Newlyweds
If you tied the knot anytime in 2025, the IRS considers you married for the entire year. You must file as either married filing jointly or married filing separately.
It is important to note that "married filing separately" is not the same as filing "single." You cannot simply expect your taxes to look like they did in 2024. While the standard deductions and lower brackets align, the top tax rate of 37% hits much faster for separate filers. You also face higher risks regarding capital gains rates, the net investment income tax, and the Alternative Minimum Tax (AMT).
Let's Find Your Best Strategy
Taxes aren't just about compliance; they are about strategy. Deciding how to file is one of those calculated risks that requires looking at the full picture.
At SD Mayer & Associates, we don't just crunch the numbers; we look for the smartest path forward for your specific situation. Whether you are navigating high medical costs, protecting your liability, or just trying to maximize your refund, we can run the scenarios for you.
Contact us today, and let’s make sure your tax filing status is working as hard as you do.
SECURITIES AND ADVISORY DISCLOSURE:
Securities offered through Valmark Securities, Inc. Member FINRA, SIPC. Fee based planning offered through SDM Advisors, LLC. Third party money management offered through Valmark Advisers, Inc a SEC registered investment advisor. 130 Springside Drive, Suite 300, Akron, Ohio 44333-2431. 1-800-765-5201. SDM Advisors, LLC is a separate entity from Valmark Securities Inc. and Valmark Advisers, Inc. Form CRS Link
DISCLAIMER:
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. The services of an appropriate professional should be sought regarding your individual situation.
HYPOTHETICAL DISCLOSURE:
The examples given are hypothetical and for illustrative purposes only.
