If you’re married, you and your spouse likely should file a joint federal income tax return. However, there are circumstances under which it may be advantageous to file separate returns. One example is if a spouse has significant unreimbursed medical expenses and relatively low income. They’re deductible as an itemized deduction to the extent that they exceed 7.5% of adjusted gross income. So in this situation, filing separately may result in a larger medical expense deduction. This strategy works only if the spouses’ combined deductions filing separately will be greater than the standard deduction for joint filers. Contact us for other examples of when filing separately may be beneficial.
