Calling all tax pros...I have a question!

[Chicago526]

DH and I got married this year (2005). What's the difference between "married filing jointly" and "married filing separately" ? Is there an advantage of one over the other?

If it matters, we file on the 1040 form, we deduct our mortgage interest, property taxes, and charitable contributions. The house is in my name only, and I also make all the donations in my name, if it matters.

THANKS!

Edited to add: BTW, should I file in my madien name or my married name? I should have my new SS card with my new name before the end of the year.

 

[Bob Slydell]

File married filing jointly -- in almost all cases, the tax liability will be lower.

 

[jennyl772003]

You are going to file with whatever name is on your SS card. If you don't, they will send you a letter telling you that your SS # does not match.
(had to do this with son. His last name changed, but forgot to get him new SS card. When I filed my taxes, I used his new name. I then had to get new SS card for him and re-file.)

 

[Pugsley]

I can't answer your question, in fact I'd like to hear the answers too since I'm in the same situation. But I doubt that anyone can tell you which would be best for you without having all your information. What we're going to do is do our returns both ways (using tax preparation software) and see which way comes out most favorable for us.

 

[Chicago526]

I can't answer your question, in fact I'd like to hear the answers too since I'm in the same situation. But I doubt that anyone can tell you which would be best for you without having all your information. What we're going to do is do our returns both ways (using tax preparation software) and see which way comes out most favorable for us.

This is true (and we are also using tax software!). But I wanted to find out, in general, what the differance between the two are. Why file seperatly at all, when married? There must be a reason this option is given, and I'm curious to know why!

 

[Bob Slydell]

This is true (and we are also using tax software!). But I wanted to find out, in general, what the differance between the two are. Why file seperatly at all, when married? There must be a reason this option is given, and I'm curious to know why!

There's not many examples of situations where married filing separately is better for a couple, but one that I've seen mentioned is if one spouse has a lot of medical expenses. Since medical expenses are a miscellaneous deduction that is subject to the 7.5% of AGI limitation, filing separately allows the spouse with the medical expenses to lower their AGI, thus allowing some of those expenses to be deductible.

But in general, filing separately often eliminates (or phases out) many other deductions, especially since any AGI limits are divided by 2 for married filing separately, thus making it more likely that some deductions which would be allowed if a couple was filing joint will be excluded if they file separate.

 

[RachelEllen]

I'm not a tax pro, but I've been dealing with this for a while.

There's no simple answer as to the differences between married filing separately and jointly. It affects the taxation rate and allowable deductions. In almost all cases you will be better off filing jointly. However, the only way to know is to run your taxes both ways and see which way you come out ahead.

Congrats on your marriage, btw, but I remember what an utter shock it was the first year I filed taxes as a married gal. Not a pretty site. As an additional fyi, I switched my payroll deduction from the married to the single withholding. If you have two income earners, you will end up in quite a pickle just withholding at the married rate.

 

[figment52]

If one of the parties has a tax lein against then if you file jointly any refund could be applied against the lien even if it is the result of the "other" party. If you file separately, the other party would get their refund.

Then there is the "injured party" rule that covers the same issue but protects the innocent. I'd have to find the tax code to look it up. I haven't done taxes professionally for a long time but I'd agree, there really isn't much reason to file separately anymore.