married filing jointly or not ?

i am not sure if this has come up, but has anyone recently run the numbers to see whether it is better to file as married filing jointly or married filing singly when there is a large discrepancy between the salaries of the two individuals ? surely the lower salaried individual would get equal relief on half the mortgage interest and also not push more earnings onto the top slice of the better remunerated partner ? and possibly lower AMT exposure too. thanks to anyone who has an answer.

I've been in that situation for years and never found filing separately to be an advantage. The only time I ever filed separately was when I was separated (but not yet divorced) from a husband whom I knew would not be responsible enough to file taxes. That way I wouldn't get in trouble for what he did or didn't report.

There is no need to work the system. I have found there not to be a big difference.

Interesting question. Never compared the two methods before, but I'd think there shouldn't be much difference, especially if you take convenience of doing taxes into consideration.

Married filing Separately you loose many deductions and tax credits. As a tax preparer, I have never seen a situation where MFS was better than MFJ.

Usually folks that file MFS do so because they want to keep things separate.

Many of the tax prep software packages can help you with determining what is the best tax wise for your situation.
Enter the data as a MFJ, and there is usually a button that will show you what your tax would be MFJ vs MFS.

There is no need to work the system. I have found there not to be a big difference.

i totally agree with you, there's no great difference

Hi All

My question is...I know that Married filing jointly has benefits over filing separately, BUT what about when you consider the AMT. Last year we got hit with it and none of our few deductions counted. Would I have better luck filing 2 returns? Does that raise any flags with the IRS if I do?

Thank you

Oconn11,

That is a difficult question.

The top 10 items that cause AMT are:
- Exemptions
- Standard Deduction
- State and Local Taxes
- Interest on Second Mortgages
- Medical Deductions
- Various Credits
- Stock Options
- Long Term Capital Gains
- Tax Exempt Interest
- Tax Shelters

You could try preparing your return MFJ and then MFS to see which way gives you the lowest tax bill.

Because you paid AMT last year, you may be able to take some AMT credit this year, if indeed you have AMT this year.

Yes I have AMT again. I have to pay back to the Feds. That was using MFJ, I will try MFS and let you know.

I think the advantages and disadvantages changes from case to case...

TroyM,

You are right that the advantages/disadvantages of filing MFJ or MFS vary case by case.

But filing MFS you will not be able to claim many of the dedcutions or tax credits.
Both deductions and credits will lower your tax bill.
I have been preparing taxes for 9 tax seasons and have yet to see a return where MFS provided the lowest tax. Usually MFS is done when for some reason the married couple want to keep their income and finances separate.

although i agree with jaun22, i chose filing jointly... ;)

t depends... Were you on welfare? If you were than you can kiss that money goodbye it has gone to the state as reimbursement for supporting your child. If not then you will just have to wait a while to get it. He has to be a month or behind for them to garnish his taxes. Did you file an injured spouse form? If you know it is going to pay back welfare, you can file an injured spouse form (if you had income last year).