Married couples have two options when they are filing their taxes: filing jointly or separately. Many believe that filing jointly is the best way to go. However there are some instances when filing separately is better option. Our ultimate goal here at Auto Credit Express is to help you and your loved ones have an improved quality of life. So for that reason we've listed a few reasons you for deciding to file your tax returns jointly or separately this year.
Filing Tax Returns Jointly
When married couples file together, they may find this to be more beneficial to their finance for many reasons. For the most part you'll find that many of your credits and deductions are combined to give you a greater refund in the end.
- Filing jointly gives you access to more credits and deductions.
- You may be able to deduct IRA contributions or add to a Roth.
- Tax returns filed jointly are usually lower in taxes.
- It's more convenient to file one return instead of two.
Filing Tax Returns Separately
As previously mentioned, there are certain cases that filing your tax return separately will save you more than jointly. You may find that in some cases you'll be saving more than just money though, but also stress if you and your spouse are estranged at the time of your tax return.
- You can deduct medical expenses in excess of 7.5% of your adjusted gross income.
- If your spouse owes the IRS, filing separately can protect your refund.
- If you are divorcing or separated, you can avoid unneeded complications.
- If your spouse is a little more 'creative' or unethical with their return, protect your refund.
Which works best for you?
In the end this choice is best left to you and your spouse to decide. Many people decide to file jointly because they do get the most deductions that way. However, some find it better to file their tax return separately simply to avoid stress and possible loss of deductions. Keep in mind that a healthy tax refund is a great tool for purchasing a new or used vehicle using a bad credit auto loan. Use our easy online application today to get started! We'll find the dealer in your local area that is ready and able to put into your choice of car, truck or SUV so you can get where you and your loved ones need to go.