By Dexter Wyckoff, Field Director, Wycoff & Associates, Northwestern Mutual

When you're married, you can choose to file your taxes jointly with your spouse or file separately. Generally, there are more benefits to filing jointly, but there are some situations in which filing separately could result in a lower tax bill. Working with a financial advisor and a tax professional can help you decide the best way to file your taxes.

Life changes quite a bit once you say, "I do." One of the less social media-worthy changes (although still very important) is your tax filing status. You can no longer file taxes using single status, but you have a few options. The good news is that the IRS has released new tax brackets for 2025, which have increased, meaning that you'll have to make more money before the amount you owe jumps up progressively.

The IRS allows five options to select from when determining tax filing status: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Generally speaking, a married person is limited to two of these options: married filing jointly or married filing separately.

Married Filing Jointly vs. Married Filing Separately

If you decide to file your taxes jointly, you and your spouse will submit a single tax return that encompasses both of your incomes, deductions, and credits. This combined return will be taxed based on your joint taxable income, and you will both share responsibility for any tax liabilities.

Conversely, if you file separately, each spouse will submit an individual tax return reflecting their income, deductions, and credits. Separately filing taxes means you will be taxed independently on your income, and each will be solely responsible for their tax obligations, which may be at different rates.

The choice between filing jointly or separately will significantly influence several critical aspects of your tax return, including:

• The tax credits you are eligible for,
• Your tax rate,
• The deductions you can claim, and
• Your annual income threshold can affect eligibility for certain benefits like contributions to a Roth IRA.

Married but filing separately have similar tax brackets as individual filers except at 35 and 37 percent.

• 10 percent: Up to $11,925
• 12 percent: $11,926 to $48,475
• 22 percent: $48,476 to $103,350
• 24 percent: $103,351 to $197,300
• 32 percent: $197,301 to $250,525
• 35 percent: $250,526 to $375,800
• 37 percent: Over $375,800

Married Filing Jointly:

• 10 percent: Up to $23,850
• 12 percent: $23,851 to $96,950
• 22 percent: $96,951 to $206,700
• 24 percent: $206,701 to $394,600
• 32 percent: $394,601 to $501,050
• 35 percent: $501,051 to $751,600
• 37 percent: Over $751,600

How Does Married Filing Jointly Work?

Tax returns filed jointly are done through one tax return that includes both your own and your spouse's income, deductions, and credits. Once you've determined your combined taxable income, you'll apply the income tax rate for your tax bracket to calculate how much you'll jointly owe in taxes.

How Does Married Filing Separately Work?

If you choose to file separately, you and your spouse will each fill out your own tax return reflecting your income, as you did before marriage. However, 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 you both can itemize. One of you cannot take the standard deduction while the other itemizes.

When you file separately, your deduction amounts are typically reduced, and eligibility for credits is assessed on an individual basis. Consequently, you will generally qualify for fewer tax credits compared to filing jointly.

Married couples often choose to file separately due to significant income discrepancies between partners. If you reside in a "community property state," filing separately requires each spouse to report their income and half of any "community income" derived from jointly-owned assets.

Additionally, only one spouse can claim shared dependents on their return when filing separately. According to the IRS, the parent with whom the child lived for most of the year has the primary right to claim the dependent. If the child spent equal time with both parents, the parent with the higher adjusted gross income gets the claim.

Married Filing Separately vs. Head of Household

A common misconception is that if one spouse doesn't work, the working spouse can file taxes as a head of household. In reality, the head of household status is designed for unmarried individuals who financially support a dependent, such as a child, sibling, or parent, but typically not a spouse. Married individuals are generally not eligible to file as head of household except in very limited circumstances.

Head of Household:

10 percent: Up to $17,000

12 percent: $17,001 to $64,850

22 percent: $64,851 to $103,350

24 percent: $103,351 to $197,300

32 percent: $197,301 to $250,500

35 percent: $250,501 to $626,350

37 percent: Over $626,350

Is It Better to File Jointly or Separately?

There are plenty of benefits to filing taxes jointly. For most married couples, filing taxes jointly usually results in the most available deductions, the most eligibility for tax credits, and the smallest tax impact. However, there are some particular circumstances in which filing separately might be more advantageous.

Specific Situations:

• One of you is repaying student loans: Filing separately could significantly reduce your loan payments if you or your spouse repays student loans on an income-based repayment plan.
• One of you incurred significant medical expenses: A spouse with a lower income would be eligible to deduct more expenses.
• You're separated or in the process of divorcing: It may be more straightforward to split your tax responsibilities.
• Legal issues: If one partner is suspected of a crime like fraud, it could benefit the other partner to file separately.

Disadvantages of Filing Separately

Filing separately generally has the disadvantage of reducing your eligibility for deductions and credits. The standard deduction is higher for joint filers, meaning that by filing separately, you typically decrease the amount you can deduct at your highest tax rate. In 2025, the standard deduction for married couples filing jointly is $30,000, while $15,000 per spouse is for those filing separately. For many couples, one partner earns significantly more than the other. The portion of the deduction used by the lower-earning spouse falls under a lower tax rate, making it less advantageous for the couple overall.

If you file separately, you will no longer be eligible to claim certain education credits, such as the American Opportunity Tax Credit or the Lifetime Learning Credit. You will also forfeit the ability to claim the Child and Dependent Care Tax Credit or the Earned Income Tax Credit.

Ultimately, in most cases, married couples will benefit from filing jointly. The primary reasons to file separately include significant income discrepancies, substantial itemized deductions, separation or divorce, and legal issues. As you and your spouse discuss your finances, consider connecting with your financial advisor and tax professional to guide you through the best options for your situation.

For more information and personalized advice, consult a Northwestern Mutual financial advisor and tax advisor.

This publication is not intended as legal or tax advice. Financial Representatives do not render tax advice. Consult with a tax professional for tax advice that is specific to your situation.

Article prepared by Northwestern Mutual with the cooperation of Dexter Wyckoff. Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) (life and disability Insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries, including Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), a registered investment adviser, broker-dealer, and member of FINRA and SIPC and Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and trust services), a federal savings bank. NM and its subsidiaries are in Milwaukee, WI.

Dexter T Wyckoff uses Wyckoff & Associates as a marketing name for doing business as a representative of Northwestern Mutual. Wyckoff & Associates is not a registered investment adviser, broker-dealer, insurance agency or federal savings bank. Dexter T Wyckoff is an Insurance Agent of NM. Investment brokerage services provided by Dexter T Wyckoff as a Registered Representative of NMIS. Investment advisory services provided by Dexter T Wyckoff as an Advisor of NMWMC.

Dexter Wyckoff, Field Director, Wycoff & Associates, Northwestern Mutual