What is married filing jointly?
Married Filing Jointly is the filing type used by taxpayers who are legally married (including common law marriage) and file a combined joint income tax return rather than two individual income tax returns.
What are the different tax brackets?
Taxpayers fall into one of seven brackets, depending on their taxable income: 10%, 12%, 22%, 24%, 32%, 35% or 37%. Because the U.S. tax system is a progressive one, as income rises, increasingly higher taxes are imposed. But those in the highest bracket don’t pay the highest rate on all their income.
What are the tax benefits of filing jointly?
Filing jointly has many tax benefits, as the IRS and many states effectively double the width of most MFJ brackets when compared to the Single tax bracket at the same tax rate level. This means that in most cases, you will pay less income tax overall by filing jointly.
Should you file taxes jointly or separately?
This means that in most cases, you will pay less income tax overall by filing jointly. In many states, married couples who choose to file separately are subject to additional restrictions.