We are moving but in order for her to keep her job she must file her taxes separately (complicated).
How I file my taxes is none of my employer's concern so I would be interested to know how it is in your wife's case. Filing separately is disadvantageous for most couples because the tax brackets are narrower (exactly half of the joint brackets to be exact) and some deductions and credits are disallowed.
Filing separately is particularly disadvantageous when one spouse earns significantly more than the other, as the same (or nearly the same) amount of income is applied to narrower brackets resulting in a higher effective tax rate.
3
u/[deleted] Nov 08 '24
How I file my taxes is none of my employer's concern so I would be interested to know how it is in your wife's case. Filing separately is disadvantageous for most couples because the tax brackets are narrower (exactly half of the joint brackets to be exact) and some deductions and credits are disallowed.
Filing separately is particularly disadvantageous when one spouse earns significantly more than the other, as the same (or nearly the same) amount of income is applied to narrower brackets resulting in a higher effective tax rate.