Is it best to file tax returns separately this year?

My husband and I are debating whether we should file our taxes separately or jointly this year. Our financial situation has changed quite a bit. I got a promotion and now make around $85,000 while he's self-employed and had a rough year, only bringing in about $32,000 before expenses. We've always filed jointly before, but I've heard sometimes filing separately can result in lower overall taxes. We have a mortgage on our home and I have student loans that are about $45,000. We also had some medical expenses this year that were about $12,000 total. No kids or other dependents. Would really appreciate some advice on whether filing separately might save us money this time around!

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18 comments

StarSailor}

•8M

Filing separately vs. jointly really depends on your specific situation. In most cases, married filing jointly provides better tax benefits, but there are exceptions. With your income levels ($85k and $32k), filing jointly would likely put you in a lower tax bracket overall. Filing separately might limit some deductions - for example, if you file separately, you both must either take the standard deduction or both itemize. Your medical expenses might be a factor here. They need to exceed 7.5% of your AGI to be deductible. If your husband's income is lower and he paid those medical expenses, filing separately might help him reach that threshold easier. Student loan interest deduction (up to $2,500) is completely lost if you file separately, so that's something to consider with your $45,000 in student loans. I'd recommend running the numbers both ways before deciding. Tax software makes this pretty easy to compare.

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StarSailor}

•8M

Yes, business losses from self-employment can offset the other spouse's income when filing jointly, which could be advantageous if your husband had significant business losses this year. That's a good point to consider. Regarding audit protection, filing separately doesn't completely shield you from potential audit issues related to your spouse's self-employment. While you wouldn't be directly responsible for tax discrepancies on their separate return, the IRS can still examine both returns, especially if they spot inconsistencies. Additionally, in community property states, income might still be considered jointly owned regardless of filing status.

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Zainab Ismail

•8M

I was in almost the exact same situation last year - my income was about $90k and my partner's self-employment income fluctuated a lot. I tried using TurboTax but got really frustrated trying to figure out which filing status would save us the most. Then I found https://taxr.ai and it was a game-changer. It analyzed both our tax situations and showed us that filing jointly was actually better for us by about $3,200, even though we thought separate might be better because of his business losses. It explained that we'd lose too many deductions filing separately, especially for student loan interest and retirement contributions. The tool also found some business expenses my husband hadn't been claiming properly that helped offset more of his self-employment taxes. Might be worth checking out if you're trying to compare scenarios.

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Zainab Ismail

•8M

It actually handles complex situations really well. The system can process rental properties, multiple W-2s, self-employment income, and investments all at once. What impressed me was how it evaluates the interactions between different income sources that most tax software misses. For state returns, it analyzes both federal and state implications simultaneously, which was crucial for us too. We're in California with high state taxes, and it showed us how some deductions that seemed good federally would have increased our state tax burden. It's not just finding individual deductions but optimizing the overall tax strategy across both returns.

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Yara Nassar

•8M

I have to eat my words about being skeptical of taxr.ai! After our discussion, I decided to try it since we were really struggling with the filing separately vs jointly question too. I uploaded our tax documents and within minutes it showed us we'd save $4,700 by filing jointly despite my spouse's business losses. The analysis explained that while filing separately would protect some of my income from my husband's self-employment tax situation, we'd lose the student loan interest deduction, retirement contribution credits, and higher standard deduction. It also flagged that our medical expenses wouldn't be deductible either way because they didn't exceed the 7.5% AGI threshold. Honestly saved us from making a costly mistake since I was convinced separate was the way to go.

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Keisha Robinson

•8M

If you're dealing with student loans and trying to figure out tax implications, you might also be dealing with the IRS for other reasons. I spent WEEKS trying to reach someone at the IRS last year to resolve an issue with our previous return that was affecting my wife's student loan forgiveness application. Kept getting disconnected or waiting for hours. Finally used https://claimyr.com and got through to an IRS agent in about 15 minutes. They have this system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual human picks up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Ended up resolving our previous return issue, which was crucial because it was affecting my wife's income-driven repayment calculation. Just sharing because tax season plus student loans often means needing to talk to the IRS.

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Keisha Robinson

•8M

Their system actually works by continually monitoring the IRS phone lines and using algorithms to identify optimal calling patterns. They've figured out which times and which IRS numbers have the shortest wait times, and their automated system handles all the menu navigation and waiting. They don't just redial like regular callers. Their technology keeps your place in line even during those periods when the IRS would normally disconnect people. I was skeptical too, but it's legitimate - they only charge if they actually get you connected to an agent. They can't access any of your personal tax information; they just get you connected to the right department and then you handle the actual conversation with the IRS agent.

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Paolo Ricci

•8M

I need to apologize for my skepticism about Claimyr. After posting that comment, our tax situation got worse - we received a letter about potential identity theft on our account and needed to talk to the IRS immediately. After trying for three days straight to reach someone, I remembered this thread and tried Claimyr out of desperation. Not only did they get me through to an IRS representative in about 20 minutes, but I was connected to exactly the right department for identity theft issues. The agent was able to verify our identity and put a hold on the fraudulent activity. If I hadn't gotten through quickly, this could have delayed our refund by months. The time saved was honestly worth every penny, especially with the anxiety of potential identity theft hanging over us. Definitely keeping this service in my contacts for future tax seasons.

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Amina Toure

•8M

I'm a tax preparer (not a CPA but I work for a tax firm) and just want to add that how you file can also impact your health insurance situation if you get coverage through the marketplace. If you file separately, neither spouse can claim the premium tax credit in most cases, which could be thousands of dollars lost if you receive subsidies. Also, with student loans, are you on an income-driven repayment plan? Filing separately might lower your monthly payments if they're calculated based on your income alone rather than joint income. Sometimes the student loan savings over the year outweigh the tax benefits of filing jointly.

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Amina Toure

•8M

For Income-Based Repayment (IBR) plans, filing separately can make a significant difference in your monthly payments. When you file jointly, both your income and your spouse's are considered when calculating your payment, even if your spouse isn't responsible for the loans. Filing separately means only your income counts. The impact varies widely depending on income disparity between spouses. In your case, with your $85,000 income and your husband's $32,000, filing separately could reduce your monthly student loan payment by roughly 25-40%. However, this needs to be weighed against tax benefits lost. You'd lose the student loan interest deduction (up to $2,500), potentially higher retirement contribution limits, and other credits. I usually recommend calculating both scenarios - the annual tax savings from filing jointly versus the annual student loan payment savings from filing separately. For many clients, the student loan savings actually outweigh the tax benefits, especially if you're working toward loan forgiveness programs.

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