Filing Joint Tax Returns

Posted by: Michael S. | Mar 14,2008


If you got married any time last year, you’re eligible to file jointly for this year’s tax season.  Is this advisable?  In a word: yes.  If you file jointly, you’ll be eligible for a number of deductions, such as:

• The Earned Income Tax Credit
• The Hope or Lifetime Learning Credit
• Student Loan Interest Deduction

If you’ve already been getting busy, you could also be eligible for the Child and Dependent Care Credit.  Be aware: if you don’t file jointly, you will not be eligible for any of these possible deductions.  In short, by filing jointly, you will be eligible for more deductions than if you were to file separately.  

If you’re the type of couple who has separate accounts, perhaps now is the time to reevaluate bringing those accounts together.  I’m talking bank accounts, credit card accounts, and even consolidating bills.  One method would be to open a new balance transfer credit card account in both of your names.  In doing so, you will both reap the benefits of lower interest, as well as improve your individual credit rating by joining accounts.  There’s no such thing as a joint credit rating, as a credit rating is determined by one Social Security number, but if one person has a bad rating and the other has a good rating, opening a joint account can help elevate the bad rating.  Of course, it can also bring down the person with a good rating, but over time this is a good method for establishing a good credit standing for a married couple.  

All told, you’re married now – act like it.  Filing joint tax returns and opening up joint accounts is a necessary part of the marriage and can help secure your financial future.  

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