The Most Common Misconceptions About Filing Joint Vs. Separate Tax Returns

In this article, you can discover…

• The impact of filing separately on the amount of taxes you’ll pay.
• Whether you can lose deductions when you file separately.
• If filing separately can be helpful when you have serious medical debt.

Will I Always Have Higher Taxes If I File Separately?

If you are married, it is generally true that you will have higher taxes if you choose to file separately. However, this is not always the case, so it would be wise to team up with an accountant who can run your taxes both ways and tell you which option will be better for your circumstances.

Can Filing Separately Protect Myself Or My Spouse From IRS Debt?

If you file your taxes separately, you are able to protect one spouse from the IRS debt held by the other. This is because the IRS can only collect taxes from the person whose name is on the return, meaning that they will not be able to collect one spouse’s debt from the other if you choose to file separately.

Will I Lose Any Deductions Or Credits By Filing Separately?

There are some deductions that you can lose by filing separately, the largest of which is the standard deduction. By filing jointly in a marriage, the standard deduction is larger than if you are married and file separately.

Additionally, there may be other deductions that only one spouse is eligible for, meaning that the other spouse would lose these deductions if filing separately. These deductions can change based on the circumstances, but it is safe to assume that you would lose some deductions by filing separately.

Will My Risk Of An IRS Audit Be Increased If I File Jointly?

This is a myth, as a joint filing will not trigger an IRS audit. Audits are most commonly triggered when the IRS notices large spikes in deductions, especially medical or charity deductions. However, there is also a proprietary computer program that randomly selects returns to be audited. These returns do not need to be suspicious or have any issues; they are simply random selections. Ultimately, filing separately will not increase your chances of an audit.

Is Filing Separately A Better Idea If My Spouse And I Have Large Medical Bills?

Medical expenses do not factor into your deductions in a helpful way unless your expenses exceed 7% of your adjusted gross income, so filing separately will generally not be the better option. If each spouse has medical bills this large, you will both be able to claim the medical deduction. However, it typically takes the combination of both parties’ medical bills to reach this threshold, meaning that filing jointly is often more beneficial.

Are you ready to get started on getting the most out of your returns?

For more information on Filing taxes jointly vs. separately, an initial consultation with The Greene Law Firm is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.