A joint tax return is a tax form submitted to the Internal Revenue Service (IRS) by two married taxpayers or a qualifying widowed taxpayer. This filing allows them to combine their tax obligations, income, deductions, and credits into one simplified document. As of 2018, this information is reported on the revamped Form 1040.
Key Highlights
- A joint tax return caters primarily to married couples, providing certain tax advantages over filing separately.
- To qualify for this filing status, the couple must be legally married in the taxable year in which the return is filed.
- Recently widowed individuals can also benefit by filing as a qualifying widow or widower.
Understanding How a Joint Tax Return Works
Filing a joint return allows qualified taxpayers to benefit from joint tax brackets, rates, and various advantages, ultimately enabling them to possibly pay less tax than if they filed separately. Here’s a glance at the federal income tax brackets for 2019, which are applicable for returns filed in April 2020:
| Income Bracket | Filing Status: Single | Filing Status: Married Filing Jointly | Filing Status: Married Filing Separately | Filing Status: Head of Household |
|-------------------|------------------------|---------------------------------------|-------------------------------------------|-----------------------------------|
| 10% | $0--$9,875 | $0--$19,750 | $0--$9,700 | $0--$13,850 |
| 12% | $9,876--$40,125 | $19,751--$80,250 | $9,701--$39,475 | $13,851--$52,850 |
| 22% | $40,126--$85,525 | $80,251--$171,050 | $39,476--$84,200 | $52,851--$84,200 |
| 24% | $85,526--$163,300 | $171,051--$326,600 | $84,201--$160,725 | $84,201--$160,700 |
| 32% | $163,301--$207,350 | $326,601--$414,700 | $160,726--$204,100 | $160,701--$204,100 |
| 35% | $207,351--$518,400 | $414,701--$622,050 | $204,101--$306,175 | $204,101--$510,300 |
| 37% | $518,401+ | $622,050+ | $306,175+ | $510,301+ |
Eligibility for Filing a Joint Return
Married Filing Jointly (MFJ)
To qualify for the Married Filing Jointly (MFJ) status, couples must be legally married by the end of the tax year, with both parties consenting to sign and submit the joint return.
Qualifying Widow/Widower (QW)
To be eligible as a qualifying widow or widower, the individual must have lost their spouse within the previous two tax years and maintain a household for a dependent child.
Restrictions
Nonresident aliens generally do not qualify to file jointly if either spouse was a nonresident alien anytime during the tax year.
Defining Marriage in a Joint Return
Marital status on the last day of the tax year determines eligibility. This is defined by the laws of the respective state or jurisdiction. Legal same-sex marriages are also recognized for federal tax purposes.
Taxpayers separating or divorcing under a final decree during the tax year are deemed unmarried for that year and cannot file a joint return.
Benefits of Filing a Joint Tax Return
Married couples can opt between two filing statuses: married filing jointly (MFJ) or married filing separately (MFS). Generally, a joint return is more advantageous when one spouse earns significantly more than the other, reducing overall tax liability. However, separate filing might be more beneficial if both spouses have similar incomes and have substantial medical expenses or miscellaneous deductions.
Conclusion
Filing a joint return can provide notable tax advantages. Couples should always calculate their tax both ways - jointly and separately - to determine the most effective option for their specific financial situation.
Related Terms: Individual Tax Return, Form 1040, Qualifying Widow/Widower.
References
- Internal Revenue Service. “1040 and 1940SR: Tax Table and Earned Income Credit Tables”, Page 15.
- Internal Revenue Service. “Form 1040 (2020)”.
- Internal Revenue Service. “Answers to Frequently Asked Questions for Individuals of the Same Sex Who Are Married Under State Law”.
- Internal Revenue Service. “Publication 501: Dependents, Standard Deduction, and Filing Information”, Page 6.
