Married Filing Separately: When Does It Make Sense?

Let’s fast forward to next April. You’re sitting down at the kitchen table, finally ready to knock taxes off the to-do list. You’ve gathered the W-2s, 1099s, and other tax documents together—maybe to file online or share with your tax professional. As you start digging in and answering questions, you’re asked what filing status you’ll be using this year. Without hesitation, you choose “jointly.” That’s what most couples do, right?

While filing jointly is a common default for married couples, there are times when “married filing separately” (MFS) can help reduce your overall tax bill or otherwise serve your financial life a little better. Only about 7% of married couples choose to file separately each year, but for certain situations, it can make sense.¹ 

Let’s take a closer look at what married filing separately really means, when it might make sense, and what drawbacks to watch out for.

What does “married filing separately” mean anyway?

When you’re married, you generally have two options for your tax filing status: married filing jointly or married filing separately.

Married filing jointly means you and your spouse combine your income, deductions, and credits on a single tax return. Doing so can lead to lower overall tax rates and access to more credits and deductions for couples.² 

In addition to being married and living together in the same household, you can claim the married filing jointly status if you are:² 

• Married and living in separate households, but not legally separated or divorced (as dictated by state laws)
• Common law married (again, as determined by the state)
• A surviving spouse who did not remarry by the end of the tax year

The “married filing separately” tax status means each spouse reports only their own income, deductions, and credits on separate returns. You’re still legally married—just treated as two independent taxpayers for federal tax purposes. If you live in a community property state, filing separately may reduce your ability to claim certain credits or deductions.

You may be required to file separately if you were married as of December 31 and:² 

• You do not meet the “unmarried” criteria used to determine head of household status
• You and your spouse cannot agree to file a joint return together
• Your spouse is a nonresident alien (meaning they do not hold a green card)

How married filing separately works

When filing separately, each spouse submits their own Form 1040, reporting only their individual income and deductions.

If you live in a community property state, things get a little more complicated. You may be required to report half of your and your spouse’s combined income, as well as separate income (which may be generated from assets or accounts that were acquired before the marriage). Along with a Form 1040, you’ll need to include a Form 8958, which indicates how you came to determine the value of your half of the community property.³ 

Tax brackets for married filing separately

The tax brackets for separate filers are essentially half those for joint filers. Because the brackets are smaller, filers meet income thresholds faster—pushing you into a higher tax bracket sooner.

Tax Rates Married Filing Jointly vs. Married Filing Separately (For the 2025 Tax Year)⁴

As a basic example of how filing status can impact your tax bill, let’s compare $150,000 income filed jointly versus separately.

Married filing jointly: At $150,000, your marginal tax rate is 22%, but your effective tax rate (how much you actually pay in taxes) comes to 13.4% (assuming the standard deduction applies).⁵ 

With no credits or adjustments, your total tax bill on $150,000 of income would come to $15,897.88.

Married filing separately: Now, your marginal tax rate jumps to 24%, and your effective rate climbs to 18.67%, just by changing your filing status. As a result, your total tax bill becomes $25,066.86 (again, assuming no additional credits or deductions).⁵ 

Still, there are situations where those narrower brackets don’t outweigh the advantages of keeping finances separate.

Does filing separately ever make sense for couples?

Yes, it can, though only under certain circumstances. Here are a few examples of when filing separately might be worth considering.

Scenario #1: One spouse has high medical bills

If one spouse has significant medical expenses, filing separately might make those costs easier to deduct.

To qualify for a medical deduction, unreimbursed expenses must exceed 7.5% of your adjusted gross income (AGI). Separating your income can lower that AGI threshold, allowing more of those medical costs to count as deductions.

Say, for example, you earn $40,000 and have $6,000 in medical expenses. Filing jointly with a spouse who earns $150,000 would make it nearly impossible to reach the 7.5% threshold.⁶ But filing separately could make part of those expenses deductible.

Scenario #2: One spouse has unpaid debt

If you or your spouse owes past due debt, including child support, student loans, or back taxes, your tax refund could be seized to cover (or offset) those debts. By filing separately, you can protect your own refund from being used to pay what your spouse owes.

It’s worth noting that if you do file separately to protect one spouse’s refund, you may be able to file a joint return with a Form 8379 Injured Spouse Allocation afterwards to later amend the return as joint filers.²

Filing separately can also make sense for couples managing student loans, especially if one spouse is on an income-driven repayment plan such as Saving on a Valuable Education (SAVE) or Pay as You Earn (PAYE). These plans base monthly payments on the filer’s individual income—meaning if they file separately, they may be able to meaningfully lower payments. This could be worth pursuing if one spouse earns significantly more or less than the other.

Moving forward, however, the One Big Beautiful Bill Act is modifying how some repayment plans calculate income.⁷ If your repayment plan is affected in the coming years, filing separately may no longer provide the same benefit it once did.

Scenario #3: Contentious or uncooperative filers

If you and your spouse are in the process of a difficult separation, are unable to communicate, or you otherwise wish to maintain separate financial liabilities, filing separately may be the most appropriate option—despite the potentially higher tax bill. 

Scenario #4: Differences in deductions or credits

In some cases, income differences between spouses can affect eligibility for key deductions and credits.

A high earner might phase out of credits such as the Child Tax Credit or IRA deduction. By filing separately, the lower-earning spouse might still qualify for certain benefits that would otherwise be lost.

The downside of filing separately

There’s a reason the majority of married couples choose to file jointly. For most, it can yield higher tax breaks and returns, as well as provide access to certain credits or deductions. On the other hand, filing separately can disqualify couples from certain credits or make them harder to claim, including the Child Tax Credit and certain dependent care or education credits.²  

Some deductions are impacted as well. For example, income phase-outs for things like IRA contributions and student loan interest deductions are lower for those who file separately—meaning your ability to deduct retirement contributions and other payments is reduced.

Speaking of deductions, you will need to coordinate (at least to some degree) your deduction strategy with your spouse. If one spouse chooses to itemize, both spouses must itemize. This means one can’t take the standard deduction while the other itemizes deductions.

Keep in mind, filing separately can be a complicated, time-consuming, and expensive process. Your family will need to prepare two separate returns, meaning double the paperwork. You’re increasing the potential for error and, possibly, incurring higher tax-prep fees.

Can you change your filing status later?

Yes, you can change from “separate” to “joint” by filing an amended return Form 1040-X within three years of the original due date. However, you cannot switch your filing status from joint to separate after the filing deadline has passed.

That being said, you aren’t locked into a certain status just because you used it last year. As your financial life evolves, you can adjust your filing status as needed—just make sure to do so before you file.

Don’t assume you know your best filing status

The majority of couples will be able to maximize their tax efficiency by filing jointly. But, just because you’ve always filed jointly doesn’t mean it’s your best option each year. Under certain circumstances, it’s worth running the numbers to double-check.

Before you file, consider discussing your specific financial challenges and changing tax laws with a tax professional. A financial advisor or CPA should be able to help you see which approach actually benefits you most when filing this year.