2023-01-25 12:00:16

6 Little-Known Perks of Filing Taxes Jointly

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By The Motley Fool

Image source: Getty Images

Goodbye to New Year's and hello to tax season! For married couples, you have the option of filing separately or filing taxes jointly. Which route you choose will depend on your situation, but many people are unaware of the various little-known perks associated with filing taxes jointly that can reduce your tax liability. Let's take a look at six of these lesser-known perks that married couples should consider when filing their taxes.

1. Retirement savings

Filing taxes jointly gives married couples the ability to save more for retirement. In order to contribute to an individual retirement account (IRA) you must have earned income. But if you are married, then each spouse can contribute up to $6,000 ($7,000 if you are over 50) even if one of them isn't working. This is done through a spousal IRA. This also doubles your tax deduction the year you make the contribution.

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Another great benefit is that the phase-out limit to contribute to a Roth IRA is higher for married couples. If you are single and make more than $144,000 in 2022, then you are unable to contribute to a Roth IRA. If you are married, however, that limit is $214,000, so if your spouse's income makes your combined income less than that amount, then you are able to take advantage of the benefits of a Roth. The same goes for contributing to a tax-deductible traditional IRA.

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