Your taxes probably weren’t part of your decision to get married—but if you’re married, why not use that to your advantage on your taxes? You have the opportunity to file your taxes jointly as a couple, which could come with some benefits. Make sure you understand the implications of filing jointly and what it could mean for your taxes.
“Married Filing Jointly” is one of the five official tax filing statuses. The others are Qualifying Widow(er), Head of Household, Single, and Married Filing Separately. The Married Filing Jointly status is the only one that involves two people being listed as tax filers on the return.
You and your spouse can only file a joint tax return in certain situations. The IRS defines “married tax payers” as two people who meet one of these requirements:
Surviving spouses may also file jointly with their spouse if they passed away during the tax year they are filing for.
There aren't special tax credits for those filing jointly just because they're filing as a married couple. However, the IRS does take into account that two people are filing, so it offers some higher deduction and credit options for married couples.
For example, for 2021 tax returns, people filing Single have a standard deduction of $12,550. Couples who are married and filing jointly can benefit from a standard deduction of $25,100—even if only one of them works and has an income.
There are also some tax credits you can't get if you're married and file separately that you might qualify for if you're married and file jointly. These include education credits, the child and dependent care credit, and the earned income credit.
Another possible benefit of filing jointly is that you may benefit from higher thresholds on income. For example, you hit the 32% tax bracket if you earn more than $164,925 in taxable income per year. But as a married couple filing jointly, you have to hit more than $329,850 in taxable income to be in that tax bracket. That's true even if only one of you works and has an income, so one of you could make a very high salary and you as a couple remain in a lower tax bracket.
Couples who combine their finances in any way benefit from open communication about those finances. And as a married couple filing jointly, good communication is key to ensuring you are filing your taxes legally and intelligently. Here are some questions you need to ask your spouse to ensure your return is accurate and decide whether filing jointly is your best option.
Taxes don't impact your credit score directly, which means that filing jointly won’t affect your credit score either. The only way taxes may impact your score is if you don't pay what you owe and end up in hot water with the IRS. In that case, they still don't directly impact your score. But you may need to take out loans, miss other payments, or make financial decisions that let you cover the taxes at the expense of your score.
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To file your taxes jointly, you simply select the status of Married Filing Jointly and enter information about yourself and your spouse.
We're not tax professionals ourselves, and this article is purely informational. Turn to tax services and professionals for advice if you're not sure how to file or need help maximizing your refund.