Filing jointly usually means lower tax rates, bigger deductions, and simpler returns for most couples, but sometimes Married Filing Separately wins. Couples in the following situations may save more with MFS:
1️⃣High Medical Expenses: If one spouse racks up big unreimbursed medical bills, separate AGIs help surpass the 7.5% threshold for a larger deduction.
2️⃣Income-Driven Student Loans: Under REPAYE or IBR, filing separately can shrink monthly payments by using only one spouse’s income.
3️⃣State Tax or Liability Worries : In states with community property rules, back taxes, or high penalties, MFS can limit joint liability and cut state tax.
One of the things I always double-check for my clients before finalizing a return is whether the couple will save the most with MFJ vs MFS, so make sure you’re also evaluating your unique situation each year to see which filing status is best for you!