1. One spouse has significant medical expenses: Filing separately can result in larger total deductions for medical expenses if one spouse has lower adjusted gross income (AGI) compared to the higher joint AGI.
2. Different income levels: Filing jointly can bring some income out of a higher tax bracket and result in more tax savings, especially when the spouses have different income levels.
3. Only wanting to be responsible for your own tax: Filing separately can ensure that each spouse is only responsible for their own tax liability, rather than being jointly and severally liable for the combined income tax. – Some tax breaks, such as the child and dependent care credit, adoption expense credit, American Opportunity tax credit, and Lifetime Learning credit, are only available to married couples filing joint returns.
– Certain deductions, including IRA contributions and adoption assistance payments, may not be available if spouses file separate tax returns.
– Social Security benefits may be taxed more if spouses file separate returns, with benefits being tax-free on separate returns if the spouses did not live together for the entire year.
– The decision to file joint or separate tax returns can impact state or local income tax bills, and should be carefully considered based on individual circumstances.
https://www.nksfb.com/tax-insights/married-couples-filing-separate-tax-returns-why-would-they-do-it/
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