How To Know When Married Filing Separately Makes Sense

In a recent MarketWatch article spotlighting tax filing options for married couples, our CEO, Marianela Collado, CPA/PFS, CFP®, CDS®, shared valuable insights on the choices between filing jointly or separately.

While the tax code generally favors joint returns, there are instances where spouses may benefit from filing apart. Marianela highlighted that income-driven student loan repayment plans are one such scenario where filing separately could be advantageous. She explained that for lower-earning spouses with significant student loan debt, filing jointly could result in substantially higher monthly loan payments due to the inclusion of both spouses’ incomes.

Additionally, Marianela emphasized that while filing separately may offer savings in certain scenarios, there could be unexpected tax consequences. She noted that separate filers might lose out on various credits and deductions, such as the tax break for child and dependent care or education, among others. As she stated, “You basically get penalized [by the tax code] for filing separately.”

Marianela underscored the importance of carefully evaluating the financial implications of each filing option before making a decision.  

Should you need assistance in determining which filing option would best suit your individual scenario, we are happy to help. Feel free to reach out to us for personalized guidance and support.

To read the full article and gain more insights, visit: 

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