Joint return definition

What is a Joint Return?

A joint return is a tax return in which the income, deductions, and credits of a reporting married couple are combined. This return can only be filed if the couple is legally married as of the last day of the tax year. There is generally some tax benefit to filing a joint return, with the Internal Revenue Service allowing higher deductions and tax benefits than are available to the filers of other types of tax returns. Married couples can instead choose to file two separate tax returns.

What Are the Pros and Cons of Filing Jointly?

The main advantages of filing jointly are lower tax rates, higher deduction thresholds, and broader eligibility for credits. The disadvantages of filing jointly include a shared liability for taxes, and the potential loss of certain itemized deductions if one spouse has significant deductions.

Filing jointly can be a beneficial option for many married couples, especially if they want to simplify their taxes and potentially save on taxes owed. However, in specific financial situations, "married filing separately" might be worth exploring.