Married couples filing a federal income tax return generally have two filing status options: Married Filing Jointly (MFJ) and Married Filing Separately (MFS). Each status has its own set of rules, standard deduction amounts, and eligibility criteria for credits and deductions. The IRS sets the specific figures annually. Understanding the differences between these statuses — without rendering a judgment about which is right for any individual couple — is the purpose of this article.
What is Married Filing Jointly?
When a couple files jointly, both spouses combine their income, deductions, and credits onto a single federal return. Both spouses are then jointly and individually responsible for the accuracy of the return and for any taxes, interest, or penalties owed. This shared responsibility is sometimes called "joint and several liability."
Couples who were legally married under state law at any point during the tax year are generally eligible to file jointly, even if they lived apart for part of the year. The IRS publishes eligibility rules and any exceptions each year.
What is Married Filing Separately?
When a couple files separately, each spouse files an individual return reporting only their own income, deductions, and credits. Each spouse is responsible only for the taxes on their own return.
Certain deductions and credits are restricted or unavailable when filing separately. The IRS publishes the current rules for which items are affected. Broadly, some credits — including the Earned Income Tax Credit and education-related credits — are unavailable to couples who file separately, and others may be reduced or subject to different phaseout thresholds.
In what situations might one status or the other come up?
Neither status is universally better. The outcome depends on the specific financial circumstances of both spouses. Some situations where the choice tends to matter:
- Significant income disparity — when one spouse earns substantially more than the other, combining incomes on a joint return may produce a different combined liability than two separate returns. The calculation varies by income level and applicable deductions.
- Student loan income-driven repayment — some income-driven repayment plans for federal student loans calculate monthly payments based on adjusted gross income. Filing separately can result in a lower reported income for the borrower spouse, which may affect the payment calculation, though it may also affect tax liability in other ways.
- Medical expense deductions — certain deductions are limited to amounts exceeding a threshold percentage of adjusted gross income (AGI). A lower AGI on a separate return may make it easier to exceed the threshold for one spouse's expenses.
- Liability concerns — if one spouse has concerns about the other's tax reporting accuracy or about sharing responsibility for an outstanding tax liability, filing separately limits each spouse's exposure to their own return only.
- State tax interaction — some states do not have a married filing separately status or require that couples use the same filing status as on their federal return. The federal choice can therefore affect state tax outcomes in ways that vary by state.
What happens if spouses cannot agree or one spouse is unresponsive?
If a spouse refuses to file jointly or cannot be located, the other spouse may have no option but to file separately. In some cases, "Head of Household" status may be available if the spouses lived apart for the last six months of the year and the filing spouse maintained a home for a dependent child, but the eligibility rules for that status are specific and should be reviewed carefully.
| Feature | Married Filing Jointly | Married Filing Separately |
|---|---|---|
| Standard deduction | Set by IRS annually (higher combined amount) | Set by IRS annually (lower per-person amount) |
| Joint and several liability | Yes | No — each responsible for own return |
| Earned Income Tax Credit | Potentially available | Not available |
| Certain education credits | Potentially available | Generally not available |
Is there a "correct" choice?
There is no universally correct choice between the two statuses. The right answer depends on each couple's income, deductions, credits, debt obligations, and any state tax implications. The IRS allows eligible couples to determine which status produces the most accurate and beneficial result within the rules, but determining that requires calculation with actual figures.
Where to get help
A tax professional can run the numbers for both statuses using your actual financial information and explain the trade-offs in your specific situation. Find a tax professional.
Sources
Internal Revenue Service — irs.gov