What Are the Benefits of Filing Jointly?
Explore the financial and legal implications for married couples filing taxes together. Understand how this status affects your fiscal responsibilities.
Married couples often consider the “Married Filing Jointly” status. This option allows spouses to file a single tax return together, combining their incomes, deductions, and credits.
Eligibility for Married Filing Jointly Status
To qualify for the “Married Filing Jointly” status, a couple must be legally married on the last day of the tax year. Even if a couple lives apart, they can still file jointly if they are not legally separated under a divorce or separate maintenance decree. If a spouse passed away during the tax year, the surviving spouse may still file a joint return for that year.
Both spouses must agree to file a joint return and typically both must sign the income tax return. Couples who are legally separated on the last day of the tax year are ineligible for this filing status.
Impact on Taxable Income and Deductions
Choosing the Married Filing Jointly status can influence a couple’s overall taxable income. The standard deduction for married couples filing jointly is $29,200 for 2024, increasing to $31,500 for 2025. This amount is double the standard deduction for single filers.
If both spouses are 65 or older or blind, they may be eligible for an additional standard deduction amount of $1,550 for each qualifying spouse. A new deduction for seniors, effective for 2025 through 2028, allows individuals age 65 and older to claim an additional $6,000 deduction per eligible individual, which can total $12,000 for a married couple where both qualify. This new deduction phases out for joint filers with a modified adjusted gross income over $150,000, disappearing entirely at $250,000.
When itemized deductions exceed the standard deduction, filing jointly can allow for a more advantageous use of these deductions. Itemized deductions, such as state and local taxes, home mortgage interest, and charitable contributions. If one spouse itemizes deductions, the other spouse cannot claim the standard deduction, requiring both to itemize. This uniformity requirement can impact the overall deduction amount for couples filing separately.
Impact on Tax Credits
Filing jointly can also affect a couple’s eligibility for and the amount of various tax credits. Many credits have income limitations, and these thresholds are often higher for joint filers, allowing more couples to qualify for or receive the full credit amount. The Child Tax Credit for 2024 is $2,000 per child, with a phase-out beginning at $400,000 for married filing jointly, compared to $200,000 for single filers. For 2025, the Child Tax Credit increases to $2,200 per dependent.
The Earned Income Tax Credit (EITC) also has higher income limits for joint filers. For 2024, a married couple filing jointly with three or more qualifying children can have an earned income and adjusted gross income (AGI) up to $66,819 to qualify for the EITC. The maximum EITC for 2024 with three or more children is $7,830. For 2025, the maximum EITC for joint filers with three or more children increases to $8,046.
Education credits, such as the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC), also feature higher income phase-out thresholds for joint filers. The AOTC provides a maximum annual credit of $2,500 per eligible student for the first four years of higher education. For 2024, the full AOTC is available to joint filers with a modified adjusted gross income (MAGI) of $160,000 or less, phasing out completely at $180,000. The LLC is worth up to $2,000 per tax return, with no limit on the number of years it can be claimed. The MAGI limits for the LLC are the same as the AOTC: $160,000 for the full credit, phasing out at $180,000 for joint filers in 2024.
The Child and Dependent Care Credit (CDCTC) can also be claimed by joint filers for work-related care expenses. For 2024, the maximum expenses that can be counted are $3,000 for one qualifying person and $6,000 for two or more. The credit amount is a percentage of these expenses, ranging from 20% to 35% depending on AGI. While there is no upper income limit preventing a claim, the credit amount decreases as income rises.
Understanding Joint and Several Liability
“Joint and several liability” means that both spouses are equally and individually responsible for the accuracy of the information on the tax return and for any tax, interest, or penalties due. This responsibility applies even if one spouse earned all the income or prepared the return.
This liability persists even after a divorce. The Internal Revenue Code Section 6013 establishes this principle.