A lot of people have been asking us how they should file for their tax returns. Assuming that a jointly filed tax return is the best way to go is not always correct. In fact, in many situations it might be better to file separately to get the most out of your annual return. In the end, Complete Auto Loans wants to help our customers get the most out of their yearly budgets. A higher tax return can make or break that decision of purchasing a more reliable vehicle or other family utilities.
Let’s look at some of the positives of filing your tax return jointly
Filing jointly is generally perceived as more beneficial as it combines both credits and deductions to give a married couple a greater annual return.
- Greater contributions to your IRA or Roth
- Filing together lowers the tax rate
- It’s just easier to combine and do everything at once
- More deductions and credits are available to couples who file jointly
Here are some of the benefits of filing a Tax Return Separately
Depending upon your credit and financial situation filing separately can actually leave more on the table for your end of the year return then doing a joint file. Most of the time, you’ll just want to do a joint file but here’s some positive points if you’re filing separately
- Complications with divorce or separation can be avoided
- It’s possible that your spouse owes a lot of money to the IRS. Filing separately can avoid these fees
- Some spouses can be fraudulent in their taxes. Filing separately can protect you.
- All medical expenses over 7.5% can be deducted of your adjusted gross income
Choosing what works
It’s all about options. If you can get more on your tax return this year than pay off some bills or hey, take a vacation. You deserve it! We hope you get the most out of your tax return this year.