Does Married Filing Jointly Save Money?

*This post has been reviewed by an Illinois Registered CPA. However, when making important financial decisions, it's best to speak with your financial advisor.

Last Updated on August 16, 2022

Do You Save Money With Filing Jointly?

If you recently got married, you might not be aware of all the practical benefits of marriage. One of them is the ability to save money on taxes. If you are wondering if married filing jointly saves money, we’re here to help you.

Learn what married filing jointly means as we walk you through the advantages of this tax filing method. In the end, you will understand if it’s helpful in your situation. If so, you can prepare for tax calculation and filing as a couple.

Can Filing Jointly Save Me Money This Year?

The short answer is yes. Married filing jointly does help you save money on taxes. This strategy is more beneficial money-wise and has always been. There are very few cases when filing separately is more advantageous. You’re probably wondering how much money you can save by filing jointly. It depends on many different factors, including

• Your income
• Your spouse’s income
• Whether or not you have kids
• Other tax benefits you may enjoy

What Does it Mean to File Taxes Jointly as a Married Couple?

The process is straightforward; it’s what the name suggests. Married filing jointly, also known as MFJ, is filing your taxes together as a couple. You fill out a single tax return, not two.

Filing jointly can seem complicated the first time, but it is definitely worth considering. Even a few hundred dollars more in your bank account makes a difference. Filing jointly can help you achieve these savings and a lot more. Depending on your income, you could save thousands of dollars on taxes.

Who can file taxes jointly this year? Almost any married couple, with a limitation. If you got married before the 1^st of January, you qualify. If not, you will have to wait until next year.

If you fall into the second category, take advantage of the time. Familiarize yourself with the benefits of married filing jointly. You only have one more tax season until you file separately. Starting the next year, you’ll be filing as a couple and may save some precious money in the process.

What Benefits Can I Enjoy by Filing Taxes as a Married Couple?

If you’re constantly wondering why you can’t save money the reason might be that you miss out on good opportunities to save money with little effort. Filing taxes as a married couple can be one of them. This tax-filing method can help you enjoy more tax credits and help you benefit from better deductions.

The bottom line is that you save money. Why pay more on taxes when you could put more in your savings account? Who knows? The money you saved can even pay off some debt and help you fix your credit fast.

Tax deductions

Let’s start with tax deductions. Do you get more money on a tax return if you’re married? Yes. This is one of the main aspects that interest taxpayers. Deduct as many expenses as you can because the result should be a lower tax bill. Deductions are not always applicable, but married couples do enjoy a higher deduction threshold.

By filing single, you have a standard deduction of $12,550 for 2021. This amount doubles if you file as a married couple. You can enjoy as much as $25,100 in standard tax deductions.

These deductions basically help you reduce your taxable income. You can claim the deductions upon filing taxes in two ways.

1. Claiming the standard amount
2. Itemizing your deductions

Both options are good. It all depends on your expenses. Claiming the standard amount saves a lot of time. You won’t have to provide proof to enjoy the deductions. The standard amount is simply reduced from your income.

Itemized deductions are more complicated and take more time to file. It might be worth it if you have lots of deductible expenses. When you itemize, you back your expenses with proof of payment. For example, if you incurred medical expenses last year, for tax deductions, you need the bills, receipt, or other expense-related documents as proof.

Tax credits

The tax credit is a benefit the IRS offers taxpayers. With this credit, you can reduce your final tax bill. Apply the credit as a dollar-for-dollar deduction. These credits can be nonrefundable or refundable. For example, the Earned Income Tax Credit is a refundable tax credit. There are also partially refundable tax credits. All in all, there are many different tax credits. Here is just a shortlist of common ones.

Tax credits available
Saver’s Credit	Adoption Credit
Premium Tax Credit	Earned Income Tax Credit
Health Coverage Tax Credit	American Opportunity Credit
Mortgage Interest Credit	Lifetime Learning Credit (LLC)

Other practical benefits of filing jointly

There are other advantages in filing jointly. One of them is simplicity. It can be easier to do the math together. You can also help each other. Your spouse might find more ways to reduce tax bills. It may be easier to spot and prevent tax filing mistakes. You will probably waste less time because you only have to go through the process once.

It is also easier if you have kids. You will claim them together. Otherwise, you would have to decide who claims who. This involves additional research and calculation.

What Should I Do to File My Taxes Jointly This Year?

There are different practical steps to take to be able to file your taxes jointly as husband and wife:

1. Report name changes to the IRS
2. Report address changes to the IRS
3. Report name and address changes to your workplace

All these changes are relevant and necessary. They help the authorities register your new status. They allow you to change how you file your taxes.

Also, your employer must be aware of any name or address change so that all your paperwork will be updated and organized for this year’s filing and the following ones. Name changes are essential. The name related to your social security number (SSN) must coincide with the one in your tax documentation.

Report name changes to avoid issues when filing. You need to complete a form and send it to the Social Security office. What if you don’t report the name change? Then, the system will spot the mismatch. As a result, you may have tax refund problems.

What Are the Steps for Married Filing Jointly?

If you’ve filed your taxes before, the joint tax filing procedure won’t puzzle you. There are some things to check and consider. Overall, the process is similar to filing single. What are the steps of filing jointly?

1. Select your new tax filing status.
2. Report your income.
3. Fill out the forms with your deductions and credits.

The new status you have to choose is married filing jointly. You will no longer file as a single individual. Make sure you don’t overlook this essential difference.

When Does Married Filing Jointly Save Money, and When Is It Better to File Separately?

Married filing jointly helps save money on most occasions. Only a few couples find it more beneficial to file taxes separately. This applies to some peculiar circumstances that might surprise you, but these things do happen.

One such case is when one of the spouses doesn’t report their income correctly. Another is when they report wrong or fake deductions. In some cases, errors occur, but there are also people who try to “fool” the system. They hope that this will lower their tax debt.

This is a dangerous practice. You wouldn’t want the IRS to come knocking at your door. You surely wouldn’t want to pay fines or penalties or be dragged into a legal process. All these are risks you take when you report fake data while filing taxes.

Do you believe your spouse could do something like this? Then, it is wiser to keep your taxes separate. If you do it together, you will both face the consequences. If you know for sure your spouse is not honest while filing, don’t get involved. Try to dissuade your spouse from this practice. They are committing a crime. If you cannot convince them, steer clear and keep your taxes separate.

Medical bills are another reason why you would want to file as a single. You or your spouse might have medical bill debt from last year, for example. The good news is that these bills are deductible. The bad news is that not everyone enjoys these deductions.

The logic is simple. The IRS allows those in need to deduct medical expenses. If you have a very good income, you won’t enjoy these deductions. If you earn less than your spouse, make sure you don’t miss out on these deductions. If you file jointly, your spouse’s income will affect you. The IRS will consider you to earn enough together. As a result, you won’t be able to deduct your bills.

File your taxes as a single for one more year to grab these deductions. Especially if you’ve got significant amounts to pay, it’s worth trying to reduce them.

Itemized deductions are a reason to file separately too. Besides medical bills, there are other expenses you can itemize and deduct. These deductions will not apply if your spouse has a large income. In this case, you might want to file separately and itemize your expenses.

Frequently Asked Questions (FAQs)

Is it still possible to file taxes jointly even if you’re widowed?

If this unfortunate event occurred, you can still benefit from married filing jointly. You can file jointly for the year when your spouse passed away.

Do I have to file taxes jointly after getting married?

No, you are not required to do this. It is an option. You can still choose to file your taxes as a single for the rest of the year even after you’re married. After that, you can file married filing separately. Check out the section above where we explain when this is more beneficial.

Is it more difficult to file taxes as a married couple vs. as an individual?

The answer is no, it is not. The process is the same. You still have to report the same facts (income, deductions, etc.). The difference is that you merge your finances with your spouse to report together. As a result, you enjoy tax advantages together. One essential aspect is choosing the correct tax filing status. It can be changed to married filing jointly.

Is filing jointly worth it?

Yes, this practice can help you save some money and time. Here are the main benefits of filing jointly. Learn more about each one in the related section of this post.

• Higher standard deduction
• Less time spent filing taxes
• Two sets of eyes checking the accuracy of the tax return

I don’t want to file taxes jointly. What other methods do you recommend for saving money?

Saving money and budgeting are the key topics we focus on. You will find in-depth information on some of the best budgeting strategies on our website. Some examples are the

• Half-payment method
• 50-30-20 budget
• Digital envelopes budget system

Do you enjoy a bigger tax refund by filing jointly?

If you file together, your income is combined. You usually get a bigger tax refund in the end. It is all a matter of mathematics. You have to calculate how much you get by filing jointly vs. separately. You can also enjoy a lower tax bracket by filing as a couple.

What are the main pros and cons of married filing jointly?

Filing jointly entails several advantages, but can also have its drawbacks. Here are the main pros and cons of this process

Pros	Cons
You can claim different deductions and credits	You also take responsibility for your spouse’s financial situation
You can lower your taxes	Tax issues from your spouse’s past could cause you issues
Only one filing is required	Two filings are required

Sources:

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Publication 501 (2021), dependents, standard deduction, and filing information: Internal Revenue Service. Publication 501 (2021), Dependents, Standard Deduction, and Filing Information | Internal Revenue Service. (n.d.). Retrieved July 19, 2022, from https://www.irs.gov/publications/p501

IRS tax deductions: 2022 income tax deductions & credits. Governmenty. (n.d.). Retrieved July 19, 2022, from https://governmenty.com/personal-tax-deductions

Publication 501 (2021), dependents, standard deduction, and filing information: Internal Revenue Service. Publication 501 (2021), Dependents, Standard Deduction, and Filing Information | Internal Revenue Service. (n.d.). Retrieved August 11, 2022, from https://www.irs.gov/publications/p501

Itemized deductions, standard deduction. Internal Revenue Service. (n.d.). Retrieved August 11, 2022, from https://www.irs.gov/faqs/itemized-deductions-standard-deduction

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Bagtas, A. (2022, March 22). Filing jointly vs separately [an ultimate guide]. Review42. Retrieved August 11, 2022, from https://review42.com/resources/filing-jointly-vs-separately/

Married filing jointly. Corporate Finance Institute. (2020, December 29). Retrieved August 11, 2022, from https://corporatefinanceinstitute.com/resources/knowledge/accounting/married-filing-jointly/