Taxes: Better to file jointly or separately?

[optoman]

Just got married this year and was starting to do my taxes. I noticed that I can't take the student loan interest credit if I file separately from the wife. Is it better to file separately or jointly?

I'll probably do both of our taxes jointly and separately but I was interested what the other married couples do out there. :disgust:

Edit for grammer

 

[kranky]

Most people figure them both ways to see which is best. A seasoned tax pro would have an educated guess without doing all the calculations, but better safe than sorry.

 

[Double Trouble]

It depends on your particular situation, noone can tell you in advance which is 'better' without knowing the particulars. However, in general, filing separately costs you more in taxes than filing jointly if you are married. It depends on your situation though.

Most software packages should let you calculate it both ways so you can figure out what your best option is.....

 

[Meggie]

Originally posted by: tagej
It depends on your particular situation, noone can tell you in advance which is 'better' without knowing the particulars. However, in general, filing separately costs you more in taxes than filing jointly if you are married. It depends on your situation though.

Most software packages should let you calculate it both ways so you can figure out what your best option is.....

MFJ

 

[FoBoT]

it depends on a lot of factors


you have to calculate both and go for the highest refund/lowest payment

 

[Cyco]

Filing jointly usually gets you a better return. Like the others have said, try it both ways and see which one gives you the most money.

 

[tm37]

First two years I was married I filed seperately.

Next four jointly.

YMMV

 

[gotsmack]

file seperately if you have assets you don't want her to know about. because as soon as she finds out about the "rainy day fund" you have stashed away, she's gonna want to spend it on some stupid vacation or something.

 

[optoman]

Originally posted by: gotsmack
file seperately if you have assets you don't want her to know about. because as soon as she finds out about the "rainy day fund" you have stashed away, she's gonna want to spend it on some stupid vacation or something.

Its actually the other way around.

It looks like we are going to have to pay this year. Getting married sucks for taxes. We would have gotten a refund if we were still single. Filing jointly will save us about $300. Next years taxes will be better because we are buying a house in about 5 months.

 

[gotsmack]

in that case YES, file jointly.

 

[Sluggo]

In our state, you wind up better off in the long run by filing jointly, even though your Federal taxes appear lower by filing separately.

Something about how the State tax is based off of the Federal deductions....my accountant told me in detail, but I forgot.


*****DONT FORGET*****

Any State taxes (Income or otherwise) you paid in 2002 are deductible on your 2003 Federal taxes, so long as you use the long form and itemize deductions.