What's the Difference Between Married Filing Jointly and Married Filing Separately?

Married couples can file their taxes together on one return (jointly) or each file their own separate return (separately), and the choice can have a big impact on what they owe. Filing jointly usually results in a lower overall tax bill because the combined income gets the benefit of wider tax brackets and access to more credits and deductions. Filing separately can make sense when one spouse has significant medical expenses, income-based student loan payments, or concerns about being held liable for the other spouse's tax debt. However, filing separately often disqualifies you from several valuable tax benefits, including the Earned Income Credit and certain education credits. For most couples, filing jointly saves money, but it's worth running the numbers both ways if your circumstances are unusual.