Should we file jointly or separately?
Short answer
Most married creators pay less filing jointly, but filing separately can make sense in specific situations, like income-driven student loan payments or keeping one spouse's tax issues separate, so it's worth running both.
Otavio Mayole, Co-founder, DeCypher FinancialsUpdated
Filing jointly usually wins because of:
- Wider tax brackets and a larger standard deduction
- Access to credits and deductions that separate filers lose or get less of
- A spouse's W-2 withholding that can help cover creator taxes
Filing separately can make sense when:
- A spouse is on an income-driven student loan plan and joint income would raise the payment
- One spouse has back taxes, unfiled years or an IRS problem you want to keep apart
- You want each person responsible only for their own return
Things that complicate it: living in a community property state, where income may be split between spouses regardless, and state rules that don't always follow federal.
The decision can change as your income grows. A setup that saved money when you made $40,000 may cost you at $150,000. We run it both ways each year.