Filing Joint Returns

• Although the Internal Revenue Service requires couples to be married by the end of the tax year to file a joint return, use of this filing status is not automatic. There are many tax benefits to marriage, but there is also joint liability for any tax debts that you or your spouse incurs. As a result, the IRS requires that both taxpayers consent to the filing of a joint return before it will impose joint liability. Since you and your spouse must both sign the return, this constitutes the consent the IRS is looking for.
  
  

Higher Standard Deduction

• A significant tax benefit to filing a joint return with your spouse is that you can claim the largest standard deduction when you choose not to itemize. The amount of your standard deduction increases each year for inflation, and in 2011 is $11,600 for married taxpayers. In contrast, single and married filing separately taxpayers receive only $5,800. Although this is the same as two single deductions, you recognize the tax benefit when one spouse earns very little income, and as a separate filer would have no use for the standard deduction. Under these circumstances, it allows the higher earning spouse to reduce his taxable income more than if filing separately.
  
  

Lower Tax Rates

• The IRS combined the income of both spouses for purposes of calculating income tax. Essentially, there is no distinction between which spouse earns more income. If you are the sole earner in your family and your spouse stays home to raise your children, the IRS views your income as if you each earn half. This principle is reflected in the income tax brackets for married taxpayers. Six tax brackets each impose a specific rate of tax on different portions of your income. However, the amount of income in each bracket is higher for married filers than for single or head of household filers. For example, a single filer pays a 10 percent tax rate on his initial $8,500 with amounts in excess of $8,500 being taxed in a higher bracket. In contrast, married filers remain in the 10 percent bracket for their initial $17,000 of taxable income. Just like the standard deduction, the real tax savings here is when one spouse earns more income than the other.
  
  

Two Personal Exemptions

• The IRS allows all taxpayers who aren't dependents to claim a personal exemption on their tax return. A personal exemption is a fixed amount that also increases for inflation each year and provides the same tax savings as a deduction. However, when you file a joint return, the IRS allows you to claim two exemptions rather than one. To illustrate, in 2011 the exemption amount is $3,700 and when you file a joint return, you can claim two for $7,400 regardless of each spouse's individual earnings.