Married Filing Jointly vs. Separately: What’s the Difference, and Which Is Better?

James D. Klaffer is a senior director of High-Net-Worth Tax Planning at Northwestern Mutual.

Life changes once you say “I do.” One of the less Instagram-worthy changes (although still very important) is your tax-filing status. While you’re no longer able to file your tax return as a single person, you do have a few options.

The IRS offers five different tax-filing statuses:

• Single
• Married filing jointly
• Married filing separately
• Head of household
• Qualifying surviving spouse with a dependent child

As a married person, you can generally choose between married filing jointly or married filing separately.

Many married couples file jointly because of the associated tax benefits, but filing separately can also have its perks. Every dollar counts, and we all like getting a bigger tax refund or other tax breaks. Below, you’ll learn how it all works, including some important things to consider when selecting your filing status.

Married filing jointly vs. married filing separately—key differences

If you decide to file your taxes jointly, you and your spouse will fill out one combined tax return. That means you’ll combine your income, deductions and credits into one return, and you’ll be taxed on your joint taxable income. Any tax liability will then fall on both of you.

If you file separately, you and your spouse will fill out two separate tax returns that each represent your own individual incomes, deductions and credits. From there, you’ll each be taxed on your own individual income (potentially at different rates) and be separately responsible for what you owe.

The route you choose will ultimately impact:

• What tax credits you’re eligible for,
• Your tax rate,
• The deductions you’re able to take, and
• Your annual income threshold (which can impact your ability to contribute to a Roth IRA).

How married filing jointly works

To file jointly, you’ll complete one tax return that includes your income, deductions and credits, as well as your spouse’s. At that point, you’ll apply the income tax rate for your income level to calculate how much you owe in taxes as a couple.

How married filing separately works

To file separately, you and your spouse will each fill out your own tax return reflecting your own income—just like you did when you were single. But when you’re married, there are a few more rules around filing separately.

1. When deciding which deductions to take, you and your spouse must use the same method. Either both of you can take the standard deduction, or
2. You can both itemize deductions.

In other words, one of you cannot take the standard deduction while the other itemizes.

Because you’re filing separately, your deduction amounts will generally be lower. And since tax credit eligibility will also be determined on an individual basis, you’ll likely qualify for fewer credits.

Who claims dependents when married filing separately?

If you file separately, only one of you can claim your dependents on your return. You can decide as a couple which spouse will claim the dependents. If you cannot agree on who should claim them, the IRS says the parent whom the child lived with the most that year gets priority. If the child lived with both parents for the same amount of time, the parent with the highest adjusted gross income (AGI) gets to claim them.

Married filing separately vs. head of household

A common misconception is that if one spouse doesn’t work, the spouse that does work can file taxes as a head of household. But this tax-filing status is intended for an unmarried person who is financially supporting a dependent. That can include a child, sibling or parent. Married people are not eligible to file as head of household except in very limited situations.

Deciding whether it’s better to file jointly or separately

There are a lot of benefits to filing taxes jointly. For the majority of married couples, filing jointly will open the door to more tax deductions and tax credits, which can reduce their overall tax burden. And most tax benefits for parents apply only to married couples who file jointly. But there are some situations in which filing separately makes more sense:

One of you has a much larger income than the other

In most cases, married couples who file separately do so because of a large income discrepancy between the two partners. In this case, itemizing can allow the partner with the smaller income to become eligible for more deductions (if they itemize).

One of you is repaying student loans

If you or your spouse is repaying student loans on an income-based repayment plan, filing separately could significantly reduce your loan payments. That’s because your monthly payment will be based only on your individual income—so if you file separately, excluding your spouse’s income could result in a lower monthly payment.

One of you had significant medical expenses in the tax year

If you itemize your deductions, you’re able to deduct any medical and dental expenses that exceed 7.5 percent of your AGI. That means filing separately can allow a spouse with a lower income to deduct more of these expenses.

Let’s say one spouse has an AGI of $150,000, and the other’s is $50,000—and the lower-earning spouse gets in a car accident and incurs a hefty medical bill. If the couple filed separately, the injured spouse could deduct anything over $3,750 (7.5 percent of $50,000). But if they filed jointly, that threshold would jump to $15,000 (7.5 percent of their combined income).

You’re separated or in the process of divorcing

If you’re in the process of ending your marriage or are already separated, it may be more straightforward to keep your tax responsibilities separate.

There are legal issues at play

If one partner is suspected of a crime like fraud or tax evasion, it could benefit the other partner to file separately to safeguard their finances. That’s because spouses who file separately are protected from unexpected tax liabilities related to the other partner.

The disadvantages of filing separately when married

The main downside of filing separately is that it reduces your eligibility for tax deductions and credits.

The standard deduction is larger for joint filers, so by filing separately, you’ll usually reduce what you’re able to deduct at your top tax rate. The One Big Beautiful Bill Act increased these thresholds. The standard deduction is:

• $31,500 for married couples filing jointly for the 2025 tax year and $32,000 for 2026.
• $15,750 per spouse for married couples filing separately for 2025 and $16,100 for 2026.

For many couples, one spouse earns substantially more than the other. As a result, the standard deduction used by the lower-earning spouse is at a lower tax rate—so it’s not as beneficial to the couple’s bottom line.

If you file separately, you’re also ineligible for education credits like the American Opportunity Tax Credit or the Lifetime Learning Credit. What’s more, you generally cannot claim the Child and Dependent Care Tax Credit or Earned Income Tax Credit.

Decide together about how to file

In most cases, married couples will benefit from filing jointly. But a couple might file separately if they’re getting divorced or one spouse’s income is much higher than the other’s. It might also make sense if one person is on an income-based student loan repayment plan or has incurred significant medical expenses.

When deciding whether to file jointly or separately, it’s important to get on the same page with your spouse regarding:

• Your combined finances and income levels,
• Important financial events that occurred throughout the tax year, and
• Tax credits and deductions you may be eligible for.

As you and your spouse discuss your finances, consider connecting with your Northwestern Mutual financial advisor. They can help you make strong financial decisions as a team, which could result in a lower tax bill. Our advisors are also well connected with other financial professionals, like tax advisors who can answer your questions and provide personalized guidance.